Use the following information for the next 3 questions.
(CMA) Table Top produces tables sold to discount stores. The table tops are manufactured in the U.S. by Table Top, but the table legs are manufactured in a plant in Nogales, Mexico. The assembly department attaches the four purchased table legs to the table top. It takes 20 minutes of labor to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next month's sales are in the finished goods inventory. Table Top also purchases sufficient raw materials to insure that raw materials inventory is 60% of the following month's scheduled production. Table Top's sales budget in units for the next quarter is as follows:
-Assume that Table Top will produce 1,800 units in the month of September 20x5. How many employees will be required for the assembly department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40 hour work week and a 4 week month.)
A) 15 employees
B) 3.75 employees
C) 600 employees
D) 1.5 employees

Question

Use the following information for the next 3 questions.
(CMA) Table Top produces tables sold to discount stores. The table tops are manufactured in the U.S. by Table Top, but the table legs are manufactured in a plant in Nogales, Mexico. The assembly department attaches the four purchased table legs to the table top. It takes 20 minutes of labor to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next month's sales are in the finished goods inventory. Table Top also purchases sufficient raw materials to insure that raw materials inventory is 60% of the following month's scheduled production. Table Top's sales budget in units for the next quarter is as follows: 
-Assume that Table Top will produce 1,800 units in the month of September 20x5. How many employees will be required for the assembly department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40 hour work week and a 4 week month.)
A) 15 employees 
B) 3.75 employees 
C) 600 employees 
D) 1.5 employees

Quizplus · Accepted Answer

To find the number of employees required, calculate the total hours needed for assembly and divide by the total hours one employee can work in a month. If each unit requires a certain number of hours to assemble, multiply that by 1,800 units, then divide by 160 hours (40 hours/week * 4 weeks). The result is 3.75 employees.

Use the Following Information for the Next 3 Questions