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 Backorder cost $25.00 $37.50 $40.00 $2000.00 $1200.00 $500.00 Capacity data Beginning workforce Labor standard per service Regular-time hours per period Overtime hours per period 12 employees 12 hours 40 hours 8 hours Demand Data Week 1 48 clients Week 4 40 clients Week 2 36 clients Week 5 38 clients Week 3 50 clients Week 6 48 clients

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Calculate the size of the workforce needed for the company
to meet average weekly demand.

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
Backorder cost
$25.00
$37.50
$40.00
$2000.00
$1200.00
$500.00
Transcribed Image Text: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 Backorder cost $25.00 $37.50 $40.00 $2000.00 $1200.00 $500.00
Capacity data
Beginning workforce
Labor standard per service
Regular-time hours per period
Overtime hours per period
12 employees
12 hours
40 hours
8 hours
Demand Data
Week 1
48 clients
Week 4
40 clients
Week 2
36 clients
Week 5
38 clients
Week 3
50 clients
Week 6
48 clients
Transcribed Image Text:Capacity data Beginning workforce Labor standard per service Regular-time hours per period Overtime hours per period 12 employees 12 hours 40 hours 8 hours Demand Data Week 1 48 clients Week 4 40 clients Week 2 36 clients Week 5 38 clients Week 3 50 clients Week 6 48 clients
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