Question
(1) Table Top produces tables sold to discount stores. The table tops are manufactured in Canada by Table Top, but the table legs are manufactured
(1) Table Top produces tables sold to discount stores. The table tops are manufactured in Canada by Table Top, but the table legs are manufactured in a plant in Nogales, Mexico. The assembly department attaches the four purchased table legs to the table top. It takes 20 minutes of labour to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next months sales are in the finished goods inventory. Table Top also purchases sufficient raw materials to insure that raw materials inventory is 60% of the following months scheduled production. Table Tops sales budget in units for the next quarter is as follows:
July 2,300
August 2,500
September 2,100
Table Tops ending inventories in units for June 30, 20x5 are: Finished goods 1,900 Raw materials (legs) 4,000
Assume that Table Top will produce 1,800 units in the month of September 20x5. How many employees will be required for the assembly department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour work week and a 4-week month.)
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