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Case Study Northcutt

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Case Study Northcutt
One problem Northcutt could run into with assumptions they have made is the assumption they are making regarding the wages they are paying their workers. For experienced workers the maximum wage is $16.80 which does not include benefits, but they assume the average wage when making their calculations which is $12.70 plus $3.50 in benefits. Assuming the average worker could lead to unreliable labor estimates. Another assumption they are making that they would run into problems with is their production planning making the assumption that when they hire someone they are at full productivity. The average employee takes three weeks to reach full productivity, the cost to train an employee is estimated at
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