Calculate the amount of wages and bonus earned by the worker based on the given stock levels, consumption, and overhead recoveries.

Steps to Solve

1. Identify the Stock Levels and Consumption Rates

Based on the problem, you need to determine the stock levels at minimum, normal, and maximum consumption rates. The stock levels are affected by the Reorder Quantity (ROQ) and the Reorder Point (ROP).

• Minimum consumption: 100 units/day
• Normal consumption: 200 units/day
• Maximum consumption: 150 units/day
• ROQ: 1,500 units
• Minimum ROP: 7 days
• Maximum ROP: 15 days

2. Calculate Minimum and Maximum Stock Levels

To find the minimum and maximum stock levels, we use the following formulas:

• Minimum Stock Level = Minimum Consumption × Minimum ROP

$$ \text{Minimum Stock Level} = 100 , \text{units/day} \times 7 , \text{days} = 700 , \text{units} $$

• Maximum Stock Level = Maximum Consumption × Maximum ROP

$$ \text{Maximum Stock Level} = 150 , \text{units/day} \times 15 , \text{days} = 2,250 , \text{units} $$

3. Calculate Wages and Bonuses

Now, to derive the wages based on the distribution overhead:

Wages are based on the recovered overhead of $1,500 at 300% recovery rate.

• Total Wages = Recovered Overhead / Recovery Rate

$$ \text{Total Wages} = \frac{1500}{3} = 500 $$

The bonus can typically depend on the performance or additional criteria not specified in the problem. Assuming a straightforward setup, let's say the bonus is a fixed rate or percentage of the wages earned.

4. Calculate Total Earnings

Finally, the total earnings would be the sum of the wages and the bonus.

If we assume a simple bonus of a specific amount (let's use a hypothetical amount, e.g., $200), then:

• Total Earnings = Wages + Bonus

$$ \text{Total Earnings} = 500 + 200 = 700 $$