Lynn Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Lynn, but the table legs are purchased from an outside supplier. The Assembly D epartment takes a manufactured table top and attaches the four purchased table legs. It takes 20 minutes of labor to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next month's sales are in the finished goods inventory. Lynn also purchases sufficient raw materials (legs) to insure that raw materials (legs) inventory is 60% of the following month's scheduled production needs. Lynns sales budget in units for the next quarter is as follows: July 2,300

August 2,500

September 2,100

Lynn's ending inventories in units for June 30 are:

Finished Goods 1,900

Raw Materials (legs) 4,000

Required:

A) The number of tables to be produced during August is:

B) Disregarding your response to the previous question, assume the required production for August and September is 1,600 and 1,800 units, respectively, and the July 31 raw materials (legs) inventory is 4,200 units. The number of table legs to be purchased in August is:

c) Assume that Lynn Corporation will produce 1,800 units in the month of September. How many employees will be required for the Assembly Department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.)