Productive Operations, Inc. has asked your team to analyze the costs, revenues and profits associated with producing 4,000, 8,000, and 16,000 units. They want to produce the units quickly and with the most profit possible. You will complete the task using Microsoft Excel for the data analysis and then creating a PowerPoint presentation of 5 to 7 slides to present your analysis and recommendations. Questions to answer: 1. What is your total fixed cost? 2. What is your total variable cost? Also consider returns to scale. Rules: 1. You must hire at least one Production Worker and one Management Worker for every hour of operation. You must hire exactly one Security Worker and one Cleaning Worker for every hour of operation. 3. Production can only happen for 8 hours per day, 5 days per week. 4. For each 8 hour shift, one hour must be a paid break for the workers during which no production occurs. 5. Using one of either type of machine, 1 production worker can produce 20 units per hour, 2 can produce 30 units each per hour and 3 can produce 19 units each. Each worker must have their own machine. 6. The rent must be paid for the whole operation period. Operation Cost Menu Worker Wage per Worker per Hour Production Workers 10 Management Worker 12 Security Workers 8 Cleaning Workers 8 Number of Workers Used Number of Hours Total Wage Paid Total Worker Cost: Machine Purchase Price of Machine Production Machines Option 1 $200.00 Production Machines Option 2 $175.00 Machine Operation Cost per Hour Number of Hours $10.00 $11.00 Total Machine Cost Location Rent per Month (30 days) Location Rent $5,000.00 Number of Days Total Rent Cost Utilities Utility Cost per Hour Utilities: Water/Electricity $5.60 Number of Hours Total Utility Cost Analysis Considerations Number of Days to Operate Number of Hours to Operate Sales Price Menu Number of Units Produced Sale Price per Unit Total Revenue 4,000.00 $10.00 8,000.00 $8.00 16,000.00 $6.00

Productive Operations, Inc. has asked your team to analyze the costs, revenues and profits associated with producing 4,000,8,000,and16,000 units. They want to produce the units quickly and with the most profit possible. You will complete the task using Microsoft Excel for the data analysis and then creating a PowerPoint presentation of 5 to 7 slides to present your analysis and recommendations. Questions to answer: 1. What is your total fixed cost? 2. What is your total variable cost? Also consider returns to scale. Rules: 1. You must hire at least one Production Worker and one Management Worker for every hour of operation. You must hire exactly one Security Worker and one Cleaning Worker for every hour of operation. 3. Production can only happen for 8 hours per day, 5 days per week. 4. For each 8 hour shift, one hour must be a paid break for the workers during which no production occurs. 5 . Using one of either type of machine, 1 production worker can produce 20 units per hour, 2 can produce 30 units each per hour and 3 can produce 19 units each. Each worker must have their own machine. 6 . The rent must be paid for the whole operation period. Sales Price Menu