Assignment:
The Hand to Mouth Company (HTM) has $200,000 in cash, no inventory, and a 90 percent learning curve. To reduce the complexity of this problem, ignore the hiring and trainign costs associated with dramatically increased production. Employees are paid $20 per hour every Friday for that week's work. HTM has received an order to build 1,000 oak desks over the next 15 weeks. Materials cost $400 per desk. Suppliers make deliveries each Monday and insist on cash upon delivery. The first desk takes 100 hours of direct labor to build. HTM will be paid $1500 per desk 2 weeks after the desks are delivered. Should HTM take this order?
| Week |
Units |
Week |
Units |
Week |
Units |
| 1 |
2 |
6 |
24 |
11 |
88 |
| 2 |
4 |
7 |
64 |
12 |
100 |
| 3 |
8 |
8 |
128 |
13 |
100 |
| 4 |
12 |
9 |
128 |
14 |
100 |
| 5 |
14 |
10 |
128 |
15 |
100 |
|
|
|
|
Total |
1000 |
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.