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

question 9

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 level production strategy is used then the required output per quarter is

• A)60,000 units.
• B)42,500 units.
• C)35,000 units.
• D)25,000 units.

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Definitions:

Marginal Cost

The cost incurred from producing one additional unit of a product or service.

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A market in which asset prices fully reflect all available information.

Profit Opportunities

Situations or circumstances where businesses can generate earnings that are above the normal expected returns.