Green Fingers are a landscaping company that contracts both labor and equipment from a local construction company: Operations Planning and Capacity Assignment, NCI, Ireland

• Green Fingers are a landscaping company that contracts both labor and equipment from a local construction company. The construction company has given green Fingers the following three capacity options:

Labor costs €10 per hour whilst the hiring of equipment is €20 per hour.

Once a capacity option has been chosen it cannot be altered and the hours associated with each capacity option are fixed.

Green Fingers estimate that the average job has revenue of €2,000 and requires 30 hours of labor and 20 hours of equipment usage.

For 2021 Green Fingers have developed the following forecast:

You are required:

1. Determine the fixed costs and break-even point for each capacity option. What is the maximum number of jobs that can be handled under each capacity option?
2. Draw a decision table for Green Fingers and calculate the profit associated with each option.
3. Using the information from part b, which option would you advise Green Fingers to pursue to maximize profit?