AndTech is high tech equipment manufacturer. One of its plants assembles budget tablets and operates on average
Question:
AndTech is high tech equipment manufacturer. One of its plants assembles budget tablets and operates on average 150 hours per month. Component cost for each tablet is $150. One worker can assemble 2 tablets every hour. Workers are paid $25 per hour and receive 50% premium for overtime. If an employee works overtime, the overtime hours are limited to 40 hours per month. The plant currently employs 40 workers. If at the end of the month, the plant has any inventory left, carrying cost is $3 per each unsold tablet. AndTech is unionized and cannot fire its current workforce. However, they can hire and fire seasonal employees at any time who will work the same amount of hours as regular workforce. The cost of hiring is $500 and the laying-off cost is $200. By the end of June the plant has 2000 units in its inventory. AndTech wants to leave no inventory by the end of the year.
Month | Demand |
July | 16,000 |
August | 9,000 |
September | 11,000 |
October | 8,000 |
November | 14,000 |
December | 17,000 |
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger