Background Information

I SEE THE LIGHT $($ISTL$)$ is a subchapter S corporation that manufactures children's

lamps$/$nightlights for use in bedrooms. These lamps are sold nationwide through a group of

independent sales representatives who have an exclusive sales region. The business is in its

tenth year and has asked you to assist in planning for next year's operations.

The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in

delightful colors. The owner of the business, Big Al$,$ creates a drawing for the figurine and faxes

it to a plant in China where a mold is created and a sample produced and hand painted. If the

mold meets the expectations of Big Al an order of $500$ lamp parts is placed. Each lamp kit

consists of the parts required to complete one lamp; a figurine, a lamp shade and the required

electrical components. There are presently $10$ different figurines that come in six different colors;

$60$ models.

There are presently $10$ workers in the plant. They are responsible for receiving the raw material,

manufacturing the product, packing and shipping. In addition to Big Al there are two office

workers who are responsible for all administrative duties.