Chat with us, powered by LiveChat Complete the calculations in the spreadsheet as appropriate Document your work and provide any rationale and explanations to support your work. Mike's Exhau | WriteDen

## Instructions

This is a calculation assignment. You'll use the tab labeled “U6 Assignment (CLO3)” in the spreadsheet.

• Answer all sections of the attached spreadsheet (questions a through h)
• Complete the calculations in the spreadsheet as appropriate
• Document your work and provide any rationale and explanations to support your work.

Mike's Exhaust Works produces efficient exhaust systems used on custom motorcycles. They sell their systems to other manufacturers, who build customized bikes to clients. Kari is the sales manager, and she has created the following projected demand schedule for Tom, the production manager….

## W6 Assignment (CLO3)

 Background information Mike's Exhaust Works produces efficient exhaust systems used on custom motorcycles. They sell their systems to other manufacturers, who build customized bikes to clients. Kari is the sales manager, and she has created the following projected demand schedule for Tom, the production manager. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Projected Demand 15000 19000 20500 21000 22000 21000 21000 19500 18000 16200 15000 15000 –> 223200 Mike's Exhaust Currently has 50 tradesmen who each work 20 days a month, and can each produce 15 exhaust systems per day. alexs: alexs: 2-12-20 need to have Herzing change the wording on part a) to be 20 days er month instead of 20 days per week. For Each problem fill in the cells with the RED "?" The GREEN CELLS are calculated cells. The BLACK CELLS are given data. a) Assuming that the company is only concerned with aggregate yearly demand, should the labor force (workers) be changed? Enter the number of workers for each month until the yearly demand (223,200) equals the yearly production you calculate by changing the number of workers. Note that the number of workers need to be the same for all months in this case when you are calculating the yearly production. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Projected Demand 15000 19000 20500 21000 22000 21000 21000 19500 18000 16200 15000 15000 –> 223200 Fill out these cells => Workers ? ? ? ? ? ? ? ? ? ? ? ? Work days 20 20 20 20 20 20 20 20 20 20 20 20 Units/Worker day 15 15 15 15 15 15 15 15 15 15 15 15 Units Produced ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! –> ERROR:#VALUE! b) Assuming that the company is only concerned with aggregate monthly demand, how should the labor force be changed to meet the monthly demand? (round to the nearest whole employee – monthly demand must be met, no underproduction allowed). Enter the number of workers for each month to match each month's demand with the monthly production. Note, that each month could have a different number of workers. 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Projected Demand 15000 19000 20500 21000 22000 21000 21000 19500 18000 16200 15000 15000 Fill out these cells => Workers ? ? ? ? ? ? ? ? ? ? ? ? Work days 20 20 20 20 20 20 20 20 20 20 20 20 Units/Worker day 15 15 15 15 15 15 15 15 15 15 15 15 Units Produced ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! c) Each time the company lays off an employee, the expenses for the layoff are \$19,000. In this year, how much are the costs of layoffs? Enter the number of negative changes in workers when you lay off workers each month. This will calculate the monthly and then the yearly cost to lay off workers. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Workers ? ? ? ? ? ? ? ? ? ? ? ? Fill out these cells => Negative Change in Workers from previous month? ? ? ? ? ? ? ? ? ? ? ? ? Cost \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 \$ 19,000 Total Layoff Cost ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! –> ERROR:#VALUE! d) During busy times, the tradesmen at Mike's will happily work up to 50% overtime each month. Each worker makes \$140 a day and overtime is 50% above standard rate. Using a fixed staff of 50 workers who are able to work overtime calculate the number of equivalent workers needed per day to fill demand. (Hint: like "b" but do not round the number of equivalent workers, go to the second decimal point X.XX) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Projected Demand 15000 19000 20500 21000 22000 21000 21000 19500 18000 16200 15000 15000 Fill out these cells => "Equivalent Workers" ? ? ? ? ? ? ? ? ? ? ? ? Work days 20 20 20 20 20 20 20 20 20 20 20 20 Units/Worker day 15 15 15 15 15 15 15 15 15 15 15 15 Units Produced ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! –> ERROR:#VALUE! e) What is the overtime wage cost in the above example (d)? Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Equivalent Workers- from problem 'b' above ? ? ? ? ? ? ? ? ? ? ? ? Actual Workers 50 50 50 50 50 50 50 50 50 50 50 50 Variation in Actual to Equivalent Workers ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! Workdays/month 20 20 20 20 20 20 20 20 20 20 20 20 Fill out these cells => Overtime Cost/day per worker above the \$140/day ? ? ? ? ? ? ? ? ? ? ? ? Total Overtime cost ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! –> ERROR:#VALUE! f) Compare this overtime wage cost to the layoff cost in (c). Which is better for the employer, Mike Mufflers? Explain why. Total Lay-off Cost to Mike's Mufflers = > ERROR:#VALUE! Total overtime Cost to Mike's Mufflers = > ERROR:#VALUE! g) The tradesmen at Mike's are in a union, and would like to eliminate the cycle of temporary hires and layoffs. They are will to negotiate their overtime wage so that it does not benefit the company to continue with this process. The current overtime wage is time + 50%. What should the union negotiate to change it to? Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Equivalent Workers- from problem 'b' above ? ? ? ? ? ? ? ? ? ? ? ? Actual Workers 50 50 50 50 50 50 50 50 50 50 50 50 Variation in Actual to Equivalent Workers ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! Workdays/month 20 20 20 20 20 20 20 20 20 20 20 20 Fill out these cells => Overtime Cost/day per worker above the \$140/day ? ? ? ? ? ? ? ? ? ? ? ? Total Overtime cost ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! –> ERROR:#VALUE! Total Lay-off Cost to Mike's Mufflers = > ERROR:#VALUE! New Total Overtime Cost to Mike's Mufflers = > ERROR:#VALUE! Type your answer = > h) In your opinion, would the union what to do this? Type your answer = >

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