Dale's Dance Studio currently has three full-time instructors who are each paid $2,500 per month. A dance instructor can only work a maximum of 100 hours per month because instruction normally takes place at night. They do receive $2,500 even if they do not work 100 hours, however. Part-time instructors can be hired at a cost of $40 per hour. Dale's has forecasted that demand for the next six months will be as follows:
|
Month
|
1
|
2
|
3
|
4
|
5
|
6
|
|
Hours
|
380
|
280
|
450
|
420
|
520
|
390
|
• What is the total cost if Dave relies on part-time employees to meet additional demand?
• What is the total cost if Dave hires one more full-time employee to meet addi- tional demand?