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The marketing director of PCR company is concerned at the company's inability to meet the quantity demanded by its customers. One consideration to overcome this
The marketing director of PCR company is concerned at the company's inability to meet the quantity demanded by its customers. One consideration to overcome this is to increase the number of hours worked using the existing machinery by working overtime. Such overtime would be paid at a premium of 50% above normal labour rates, and variable overhead costs would be expected to increase in proportion to labour costs. Requirement: Critically evaluate this strategy and state your findings (qualitative factor) as to the expected increase in contribution (if any) and discuss any issues that could arise and would need to be resolved. (Please discussion in both positive and negative of working overtime)
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