Livingston Fabrication has created the following aggregate plan for the next 5 months (see PDF): Assume that Livingston will hav
e nothing in inventory at the end of July. Livingston employs 500 production assembly workers and it takes one production assembly worker 3 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 160 hours of assembly time a month without requiring overtime pay. a. Livingston wants to complete this plan without working any overtime in assembly. How many additional production assembly workers does Livingston need to hire to accomplish this? When should they be hired? b. Using this production plan, how many units will be in inventory at the end of October? c. What will the average inventory level be each month?
1 answer:
Answer:
Explanation:
worker's production rate = 60/3 = 20units per hour
monthly capacity 160 x 20 = 3200 units.
capacity needed to produce 2000000 units
= 2000000/3200
= 625
therefore, since they already have 500 workers, they need to hire 125 more workers.
b) At the end of October they will have 2 million inventory.
c) Average inventory in each of the months has been listed in the attachment below.
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Answer:
Selling price per unit = $205
Explanation:
Provided that,
Desired profit = 30% of average assets
= $150,000 30% = $45,000
Total units of chairs to be sold = 400
Variable cost total = 400 $70 = $28,000
Total Fixed cost = $9,000
Add: Desired Profit = $45,000
Total sales value shall be = $28,000 + $9,000 + $45,000 = $82,000
Thus selling price per unit = $82,000/400 = $205 per unit.