Analysis

A profitable company should consist of  ⅓ labor, ⅓ materials/ overhead, and   ⅓ profit. The total net pay after taxes was $73, 961.76. Using this number along with other numbers from Choppers’ last quarter profit and loss statement, payroll is currently running roughly 45% of the company’s overall gross profit. Being that each employee’s regular wage rate is based on experience, this dictates the varying wage rates among employees.  Two employees are making an hourly rate of $15.00, two are making $16.00, two are making $17.00, one is making $18.00, one is making $20.00, one is making $21.00, another is making $22.00, lastly the manager is making the most at $23.00 an hour. During the last quarter of 2019, Choppers’ employees have worked a total of 4,327 regular hours and 215.5 hours of overtime combined.  

This data shows that Choppers prefers higher skilled workers as opposed to unskilled. Highly skilled workers are defined as those who can be crew leaders or foreman. The time needed to train unskilled workers would only contribute to a decrease in profit. 

It is very important to maximize the amount of time that the employees are contributing to billable hours. Time spent traveling to and from jobs, duration at jobs, as well as downtime factor into regular and overtime hours recorded. Workers are paid for time spent in traffic as well as other unforeseeable factors which cannot easily be measured weekly or even monthly. This causes day to day operations to vary greatly.  While we cannot account for these unforeseen occurrences in our solution, there are still factors that can be adjusted to help maximize profits.