2005 INFORMATION SUPER STUPENDOUS DEPARTMENT DEPARTMENT
Number of machines available 26 20 Annual capacity per machine 15,000 gallons 15,000 gallons Annual production capacity 390,000 gallons 300,000 gallons Machine hours available per machine 1,800 hours 1,800 hours Standard machine hour per gallon . 12 hour / gallon . 12 hour / gallon Standard labor hour per machine hour 1.25 labor hr / mach . hr 1.25 labor hr / mach . hr Actual sales volume 420,000 gallons 268,200 gallons Number of hourly employees 29 21 Supervisors ( one per each eight hourly employees ) 4 3 Raw material prices Cans 40 ¢ each 40 ¢ each Pigment $ 2.75 per pound $ 3.75 per pound Raw material usage Cans one per gallon one per gallon Pigment two pounds per gallon two pounds per gallon Direct labor rate $ 8.25 per hour $ 8.25 per hour
2006 PROJECTED SALES INFORMATION
The sales department feels very good about the prospects for 2006 . The reputation of the new product , Stupendous Paint , has increased significantly due to effective adverting in the past few years . The sales department is ready to launch a major advertising campaign which is expected to result in the trend of the last three year to continue for the Stupendous brand even with a small price increase per gallon .