Table 10.2 Archie Toys Is a Retailer Operating Out of Wichita, Kansas

question 140

Multiple Choice

Table 10.2
Archie Toys is a retailer operating out of Wichita, Kansas. It experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. The workforce requirements (expressed as number of employees) are given in the following table for the next six periods.

Costs associated with operations are as follows:
Wages = $800 per worker per month
Hiring cost = $300 per worker
Layoff cost = $200 per worker
The current workforce level is nine workers, and the undertime is paid for. Use the spreadsheet approach and the preceding data to answer the following questions.
-Use the information in Table 10.2. The total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs, using a level strategy in which no overtime is allowed and the undertime paid for, is:

• A) less than or equal to $60,000.
• B) greater than $60,000 but less than or equal to $65,000.
• C) greater than $65,000 but less than or equal to $70,000.
• D) greater than $70,000.

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Definitions:

Air Brake Systems

Pneumatic brake systems used primarily in heavy vehicles, utilizing compressed air to create the friction needed for stopping.

Heavy-duty Trucks

Trucks designed for large payload capacities and durability, used for commercial purposes such as hauling freight, construction materials, and specialized equipment.

GVW Categories

Classification system for vehicles that categorizes them based on their gross vehicle weight, which includes the total weight of the vehicle and its maximum load.

Class 6

A classification referring to a medium-duty commercial truck as defined by the Department of Transportation, generally having a gross vehicle weight rating (GVWR) between 19,501 and 26,000 pounds.