In: Finance
The consulting agency is working with the client on engineering plans. The client has 3 sanitation engineers that each can work 160 hours per month at a rate of $40 per hour. When the client needs more than 160 hours per month from a sanitation engineer, they get overtime pay of $60 per hour. The client does not allow their sanitation engineers to work more than 240 hours in a month. The treatment facility demand for sanitation engineering hours over the next 6 months is given.
Month |
Estimate Engineer Hours |
Jan. |
480 |
Feb. |
650 |
March |
720 |
April |
840 |
May |
900 |
June |
975 |
Total |
4,565 |
The consulting agency has experienced sanitation engineers that work on a temporary contract with them as needed to support their client busy time periods, if needed, for $100 per hour. The client will not layoff anyone, but could however hire another sanitation engineer depending on needs.
Develop an aggregate plan for the next 6-months. Compute the cost of the plan using overtime and temporary engineers. Should the client hire another engineer?
Question 2 options:
Total Cost of Plan $238,500. Do not hire another engineer. |
|
Total Cost of Plan $184,900. Do not hire another engineer. |
|
Total Cost of Plan $184,900. Hire another engineer to save $14,500. |
|
Total Cost of Plan $238,500 . Hire another engineer to save $31,200. |