How many employees would be needed for the coming year

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Reference no: EM13227032

Keep-It-Kleen Trucking Company provides routine maintenance and minor repair service at a fixed charge for clients within a 20 mile radius of the firm. The company's customers have seasonal businesses and try to postpone some maintenance until their slow seasons. This results in a seasonal demand for KIK services. The number of jobs forecast for the next four quarters are 840, 1060, 940, and 1180, respectively. A typical service call requires 7.4 hours, including travel and paperwork. Employees are paid $9.60 per hour and the typical employee works 490 hours per quarter. Employees are paid for 2,080 regular hours per year plus any overtime they might work. Skilled laborors for this kind of work are scarce, so KIK wants to provide permanant employment to its work force. The company will consider the use of overtime (paid at time and one half) to meet some of the peak period demand.

Suppose the company desires to maintain a constant workforce sufficient so that overtime during the peak demand period will not exceed 20 percent of regular time capacity. How many employees would be needed for the coming year?

Reference no: EM13227032

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