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Now that youve worked out the numbers and fully understand what your Break-even Point is both in Units and in Dollars, its time to plan
Now that youve worked out the numbers and fully understand what your Break-even Point is both in Units and in Dollars, its time to plan out the production schedule for the Sand Blower.
The Sand Blower needs to be produced and ready for distribution by March 1, 2022, ready for the 2022 Golf Season. The only challenge is that you cannot begin to produce/manufacture the Sand Blowers until December 1, 2021.
For this question use these figures:
Based on the per-unit production estimate that an employee will take 4 hours @ $20.00/hr to produce each unit.
How many employees should you employ on day 1, starting December 1, 2021?
Remember you have 12 weeks to produce 400 units and must keep your employees fully employed for the entire week 12 week period. Note, if employees require working overtime, their pay for overtime hours increases by 25%.
Please provide the number of employees you would employ and why. Justify your position by analyzing the figures (numbers) provided
At a minimum, you need to provide
1. The business rationale
(4 marks)
2. The total cost of labour to produce 400 units in the 12 week period
(8 marks)
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