Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish this without additional investments in manufacturing equipment.
a. Calculate the required number of overtime hours per week and per day. Assume a 50 . week year.
b. Calculate the incremental cost of producing a chassis. Assume overtime is paid at 150% of labor cost of $50 per hour and that annual deprecation will remain at 2015 levels.
