Case for Budgeting & Control Company Simple Laminates brothers Inc. is producing impregnated papers for the furniture industry. Following information of the parts of the product. Material base Product Plastic Melamine Phenol Pallets Paper Melamine resin Phenolic resin Packaging cost per 4500 Melamine Phenol Impregnated paper sqm product product units cost per cost per som 70gr 0,21 0,21 70gr 2.25 0,1575 65gr 2.15 0.13975 1 50 90 0,02 0,018 Direct Material 1875 0.36775 In order to produce the products, the company has 6 direct employees per shift preparing impregnated papers at an annual cost of 30.000 per employee. The employees have a working schedule of 1750 hours per year. The production site works with a 3-shift schedule, 24 hours per day. To coordinate the production we have a foreman, with a total annual cost of 50.000 per year. If there is a need for more direct labor the company has the chance to use overtime with the existing employees at actual cost per hour with an increase of 50% The production facility has two production lines operated by 3 employees each at the same time. The company pays a rent for the production hall of 5.000 per month, and the utilities expenses are expected to be of 500 per month, fixed and a variable cost of 0,005 per sqm. The sales organization has one customer service with an annual cost of 33.500, and the support of an external agent that takes a 5% commission over sales The administration of the company has two persons in the accounting department, with an annual cost of 25.000 each The machines run at 50 linear meters per minute, and the product has a width of 2 meters. Our quarterly sales budget for 2019 is: a3 04 Total 741 600 30 1.200 Unit sales melamine Unit sales phenol 7.776.000 7698200 11 289.500 1.100.250 11.016.000 107966 The sales price for melamine products is 45cents, and the price for the phenolic is 40 cents. This is the production calendar that the company has agreed with its union distribution Production days according to calendar 3.- For the year 2020, the market situation has changed, Phenol sales units drop 1.000.000 every quarter compared to 1919 and melamine products increase in 1.500.000 every quarter. Raw materials cost has also changed both melamine and phenol resins have a prices per kg of 2. Prepare a new production schedule maximizing the result, assigning the overtime if needed to the last quarter and prepare a quarterly budget 2020. Case for Budgeting & Control Company Simple Laminates brothers Inc. is producing impregnated papers for the furniture industry. Following information of the parts of the product. Material base Product Plastic Melamine Phenol Pallets Paper Melamine resin Phenolic resin Packaging cost per 4500 Melamine Phenol Impregnated paper sqm product product units cost per cost per som 70gr 0,21 0,21 70gr 2.25 0,1575 65gr 2.15 0.13975 1 50 90 0,02 0,018 Direct Material 1875 0.36775 In order to produce the products, the company has 6 direct employees per shift preparing impregnated papers at an annual cost of 30.000 per employee. The employees have a working schedule of 1750 hours per year. The production site works with a 3-shift schedule, 24 hours per day. To coordinate the production we have a foreman, with a total annual cost of 50.000 per year. If there is a need for more direct labor the company has the chance to use overtime with the existing employees at actual cost per hour with an increase of 50% The production facility has two production lines operated by 3 employees each at the same time. The company pays a rent for the production hall of 5.000 per month, and the utilities expenses are expected to be of 500 per month, fixed and a variable cost of 0,005 per sqm. The sales organization has one customer service with an annual cost of 33.500, and the support of an external agent that takes a 5% commission over sales The administration of the company has two persons in the accounting department, with an annual cost of 25.000 each The machines run at 50 linear meters per minute, and the product has a width of 2 meters. Our quarterly sales budget for 2019 is: a3 04 Total 741 600 30 1.200 Unit sales melamine Unit sales phenol 7.776.000 7698200 11 289.500 1.100.250 11.016.000 107966 The sales price for melamine products is 45cents, and the price for the phenolic is 40 cents. This is the production calendar that the company has agreed with its union distribution Production days according to calendar 3.- For the year 2020, the market situation has changed, Phenol sales units drop 1.000.000 every quarter compared to 1919 and melamine products increase in 1.500.000 every quarter. Raw materials cost has also changed both melamine and phenol resins have a prices per kg of 2. Prepare a new production schedule maximizing the result, assigning the overtime if needed to the last quarter and prepare a quarterly budget 2020