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

question 69

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 inventory at the end of quarter 3 is

• A)0.
• B)5,000.
• C)10,000.
• D)17,500.

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Definitions:

Invoice

The bill that the seller sends to the buyer.

Gross Profit

The financial metric that indicates the difference between revenue and the cost of goods sold (COGS), revealing how much a company earns from its core business activities.

Selling Expenses

Costs incurred directly in the selling of goods and services, such as salaries of sales staff, advertising, and store display.

Cost of Merchandise Sold

The total expense incurred to purchase or produce the goods that have been sold during a particular period.