The Hand-To-Mouth Company (HTM) has $200,000 in cash, no inventory, and a 90 percent learning curve. To reduce the complexity of this problem, ignore the hiring and training costs associated with dramatically increased production. Employees are paid $20 per hour every Friday for that week’s work. HTM has received an order to build 1,000 oak desks over the next 15 weeks. Materials cost $400 per desk. Suppliers make deliveries each Monday and insist on cash upon delivery. The first desk takes 100 hours of direct labor to build. HTM will be paid $1,500 per desk 2 weeks after the desks are delivered. Should HTM take this order?

Transcribed Image Text:

Week Week Week Units Units Units 2 6 24 11 88 4 64 12 100 3 128 13 100 100 12 128 14 128 14 10 15 100 1,000 Total 4.