Instructions:

The following scenario represents decision making challenges for a small business. You are required to analyze the information provided and provide answers based on numeric analyses you conduct. Please note:

Your answers are based on the information provided so NO ASSUMPTIONS ARE REQUIRED OR ACCEPTED.

In offering your answers, you must show how you arrive at your answers so YOU MUST SHOW ALL YOUR WORK $($what method you used, where you get the numbers from and why you are using them$).$

Giving answers without showing how your arrived at them will not receive any credit.

Brothers Flooring

Two brothers, Ali and Abbas Hamdouni have started a flooring business installing tiles, laminate and hardwood floors in residential units. From their start they have been very keen about the quality of their work and closely monitored the workmanship of their employees. Two weeks ago Ali started experiencing sharp joint pain and was diagnosed with advanced arthritis so doctors ordered him to stop working or work minimally. This left Abbas in charge of finishing the contracts using their employees. However, Ali agreed to help out as much as he could during busy times and Abbas agreed to pay him $$125$ per square meter $($m$2)$ for the flooring he would install.

With Ali on leave, Abbas wonders how he can start and finish the jobs the company has accepted for the next six months. All jobs must start and be completed within the contracted month as summarized in the following table:

Concerned about delivering quality workmanship, he summoned his employees and told them the four of them will target installing $640$ m$2$ every month $($ each doing $160$ m$2)$ and receive their flat monthly salary of $$5,000/$month$.$ Abbas also agreed that anyone who installs more than $160$ m$2$ to finish a contract will receive an additional overtime pay of $$62\mathrm{.}50$ per m$2$ as long as nobody installs more than $240$ m$2$ in a month. "You will have your jobs, with salary and overtime pay, but we don't want to do rush install and lose quality" said Abbas to all.

The next day Abbas shared with Ali the deal he had made with the employees. Ali reiterated his willingness to help out as needed and informed Abbas that the business volume might increase next year. This news led Abbas to wonder if they will need another employee.

As stressed as Abbas is$,$ he has asked for your help. To help him...

Develop a $6-$month plan for the above period based on current conditions and determine the cost of your plan. $[13$ marks$]$

Develop a $6-$month plan for the same period with the addition of another employee and determine the cost of this proposed plan. $[13$ marks$]$

Advise Abbas if he should hire a new employee with the same pay during this period? $[4$ marks$]$