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The Draper Tax Company provides tax services to local businesses. Draper chooses to meet all demand as it occurs because customers are unwilling to
The Draper Tax Company provides tax services to local businesses. Draper chooses to meet all demand as it occurs because customers are unwilling to accept back orders. The company has provided the following cost, capacity, and demand information. Draper Tax Company Problem Data Cost data Regular-time labor cost per hour Overtime labor cost per hour Temporary worker cost per hour Hiring cost per permanent worker Firing cost per permanent worker Back-order cost $25.00 $37.50 $40.00 $1,800.00 $1.300.00 $600.00 Capacity data Beginning workforce Labor standard per service Regular-time hours per period Overtime hours per period Demand data Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 12 employees 12 hours 40 hours 8 hours 46 clients 35 clients 48 clients 40 clients 36 clients 52 clients Calculate the costs associated with this plan. Regular-time labor Cost Overtime Cost Total Cost $ tA SA $ EA
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