Red Tag Maintenance Corporation runs a “fixed fee” repair operation using seven independent repair people. Its motto is: “We do it right for less!” Red Tag’s policy is to quote, over the phone, a...

Red Tag Maintenance Corporation runs a “fixed fee” repair operation using seven independent repair people. Its motto is: “We do it right for less!” Red Tag’s policy is to quote, over the phone, a fixed fee for the service, plus parts and taxes. Thus it is in their best interest to f assign repair people to services so that the total cost is minimized. Because of the various skill levels of the individual repair persons and the locations of the service calls, different costs will be accrued by Red Tag for the various service/repair person assignments.

 On Thursday morning six service calls were waiting when the company opened for business. Given the location of the job and the type of repair, the computer generated the job cost estimates in the table for problem 38. (An “X” means the repair person is not capable of doing this repair.)

 a. Which repairman should be assigned to each service call? What will be the total cost to Red Tag?

b. If Red Tag wants to make a 30% profit on each service, how much should it quote for each individual repair? What will be Red Tag’s profit on these six service calls?