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A manager faces peak (weekly) demand for one of her operations, but is not sure how long the peak will last. She can either use
A manager faces peak (weekly) demand for one of her operations, but is not sure how long the peak will last. She can either use overtime from the current workforce, or hire/layoff one temporary worker and just pay regular-time wages. Regular-time pay is $600 per week, overtime is $750 per week, the hiring cost is $2,000, and the layoff cost is $2,000. Use breakeven analysis to solve this problem. What is the fixed cost for the regular-time option? $ (Enter your response as an integer.) What is the fixed cost for the overtime option? $ (Enter your response as an integer) Assuming that people are available seeking such a short-term arrangement, how many weeks must the surge in demand last to justify a temporary hire? weeks. (Enter your response rounded up to the next whole number)
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