Commitment of activity resources Crown Cable Company provides cable television service in the Richfield metropolitan area. The company hires only full-time service persons working 40 hours a week at \(\$ 18\) per hour, including fringe benefits. Service persons handle additional service demand by working overtime at the rate of \(\$ 24\) per hour. The service manager uses standards for estimating the workload and staffing requirements. Each service person can handle an average of six calls in an 8 -hour work day. The estimated number of service calls for the first 3 weeks of next month follow:

Required

a. Determine the number of service persons that will be hired in each of these 3 weeks to minimize costs.

b. Estimate the service labor cost for each of the 3 weeks.

c. Suppose that the company cannot change the staffing level from week to week. Estimate the service labor costs, assuming that the same number \((38,39,40,41,42,43,44\), or 45\()\) of workers is hired for all 3 weeks. How much do costs increase under this restriction?

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Week Service Calls 1 1,280 2 1,340 3 1,200