Lego Flounder Company

Your group has decided to start your own company, Lego Flounder Company. Your company will manufacture and sell Flounder, made from Legos, as shown in another discussion posting.

A reliable vendor has been found and quoted the following costs for materials:

Type of Block	Cost per Block
Small rectangular block	$0.25
Large rectangular block	$0.16
size Large rectangular block	$0.15
Curved block	$0.95
5-sided block	$0.90
Block with eye	$1.50
Miscellaneous Item	Cost per Finished Product
Packaging	$0.85

Not all of the above shapes need to be used (this information sheet is being used for many different Lego Companies). Each finished product must be packaged individually.

You have conducted a survey of the local area and found that the production employee wage rate is $11.90 per hour. Each employee will expect to receive two weeks paid vacation and fully paid health insurance at a $375 monthly cost per employee. You expect each employee to manufacture ten Flounder per hour. (Yeah, they are not fast, but they do their own quality control.)

Your marketing research indicates you will be able to sell 100,000 Flounder your first year at a sales price of $19.75. Since this is considered to be a fad product, the company does not want any ending inventories.

Question:

Determine how many direct labor employees are necessary to meet demand. You do not intend to pay overtime. Laborers work eight hours a day Monday through Friday, which does not include time for lunch since it is not paid. They receive two weeks of paid vacation, but six paid holidays. If your calculation results in a partial person, remember that you will have to round up to a whole number. You do not intend to hire any part-time labor.