The Following Information Relates to a Company's Aggregate Production Planning

question 39

Multiple Choice

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a chase demand strategy is used then the total hiring and firing cost of the plan is

• A)$340,000.
• B)$250,000.
• C)$125,000.
• D)$90,000.

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Definitions:

Before-Tax Income

The total personal income earned by an individual or household before any taxes have been deducted.

High-Income Families

Households with an income significantly above the average, often associated with greater purchasing power and wealth accumulation.

College Degree

A certification awarded by colleges or universities upon successful completion of a course of study.

Full Time

Employment status characterized by working the number of hours defined as standard by an employer, typically around 40 hours per week.