Zanda Corporation Is Preparing an Aggregate Production Plan for Its

question 1

Multiple Choice

Zanda Corporation is preparing an aggregate production plan for its product for the next four months.The company's expected monthly demand is given in the following chart.The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month.Following is other critical data: Production cost per unit = $125
Inventory carrying cost per month per unit = $10 (based on ending month inventory)
Hiring cost per worker = $50
Firing cost per worker = $100
Beginning number of workers = 25
Each worker can produce 25 units per month.
What is the total cost of a CHASE plan (using hiring/firing) ?

• A)$379,800
• B)$379,000
• C)$381,100
• D)$380,300

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Definitions:

Price Per Share

The current market price of a share of stock in a company.

Market Value

The ongoing price that an asset or service can fetch when bought or sold on the market.

Equity-Financed

Financing obtained through the sale of company shares, contributing to the capital structure without incurring debt.

Combined Firm

describes a business entity that results from the merger or acquisition of two or more firms, combining assets, liabilities, and operations.