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Two brothers, Anne and Bon Smith have started a ooring business installing tiles, laminate and hardwood oors in residential units. From their start they have
Two brothers, Anne and Bon Smith have started a ooring business installing tiles, laminate and hardwood oors in residential units. From their start they have been very keen about the quality of their work and closely monitored the workmanship of their three employees. Two weeks ggg Anne started experiencing sharp joint pain and was diagnosed with advanced arthritis so doctors ordered him to stop working or work minimally. This left Bon in charge of nishing the contracts using their employees. However, Anne agreed to _l_1elp_gu_t_ as much as he could during busy times and Bon agreed to pay him $125 per square meter {m2} for the ooring he would install. With Anne on leave, Bon wonders how he can start and nish the jobs the company has accepted for the next six months. Alljobs must start and be completed within the contracted month as summarized in the following table: Concerned about delivering quality workmanship, he summoned his three employees and told them the four of them will target installing 64D w month { each doing lot] m2) and receive their at monthly salary of $5,GODfmonth. Bon also agreed that anyone who installs more than 160 1112 to nish a contract will receive an additional overtime pay of $62.50 per m2 a_s__l_o_r_1g_gs_ nobody installs more than 240 ml in a month. "You will have your jobs, with salary and overtime pay, but we don't want to do rush install and lose quality" said Eon to all. The next day Eon shared with Anne the deal he had made with the employees. Anne reiterated his willingness to hglpugut as needed and informed Bon that the business volume might increase next year. This news led Bon to wonder if they will need another employee. As stressed as Eon is, he has asked for your help. To help him Develop a 6-month plan for the above period and determine the cost of your proposed plan. [13 marks] Develop a revised plan to determine if he should hire an additional employee with the same pay during this period [13 marks] and advise him of your recommendation and why [4 marks]
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