Total salaries of workers

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Reference no: EM132007487

An assembly line can produce 90 units per hour. The line’s hourly cost (total salaries of workers) is $4928 on straight time (the first 8 hours). Workers are guaranteed a minimum of 6 hours (i.e., they will be paid for 6 hours per day, even if they work less than 6 hours). There is a 50% premium for overtime (i.e., salary is increased 50% during overtime hours), however, productivity for overtime drops by 6% (i.e., the number of units produced per hour drops 6%). What is the total costs if 977 units needs to be produced?

Reference no: EM132007487

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