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Brothers Flooring Two brothers, Ali and Abbas Hamdouni have started a flooring business installing tiles, laminate and hardwood floors in residential units. From their
Brothers Flooring Two brothers, Ali and Abbas Hamdouni have started a flooring business installing tiles, laminate and hardwood floors in residential units. From their start they have been very keen about the quality of their work and closely monitored the workmanship of their three employees. Two weeks ago Ali started experiencing sharp joint pain and was diagnosed with advanced arthritis so doctors ordered him to stop working or work minimally. This left Abbas in charge of finishing the contracts using their employees. However, Ali agreed to help out as much as he could during busy times and Abbas agreed to pay him $125 per square meter (m) for the flooring he would install. With Ali on leave, Abbas wonders how he can start and finish the jobs the company has accepted for the next six months. All jobs must start and be completed within the contracted month as summarized in the following table: Months estimated volume of work (in square meter) August 600 September October November De 500 1000 1200 Concerned about delivering quality workmanship, he summoned his three employees and told them the four of them will target installing 640 m every month (each doing 160 m) and receive their flat monthly salary of $5,000/month. Abbas also agreed that anyone who installs more than 160 m to finish a contract will receive an additional overtime pay of $62.50 per m as long as nobody installs more than 240 m in a month. "You will have your jobs, with salary and overtime pay, but we don't want to do rush install and lose quality" said Abbas to all. The next day Abbas shared with Ali the deal he had made with the employees. Ali reiterated his willingness to help out as needed and informed Abbas that the business volume might increase next year. This news led Abbas to wonder if they will need another employee. As stressed as Abbas is, he has asked for your help. To help him 1. Develop a 6-month plan for the above period and determine the cost of your proposed plan. [15 marks] 2. Advise him if he should hire a new employee with the same pay during this period? You may do so by developing another Plan for the same six months. [15 marks]
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There are 3 Steps involved in it
Step: 1
1 6Month Plan with Existing Employees 15 marks Plan This plan utilizes the existing workforce Abbas and 3 employees targeting 640 m of installation pe...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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