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:

Aggregate Demand

The unified demand for all categories of goods and services within an economic framework, at a particular price level for a given time frame.

Money Supply

A measurement of the total amount of money available in an economy at a specific time.

Interest Rate

The fee, represented as a percentage of the total amount lent, that a lender imposes on a borrower for the utilization of assets.

Quantity of Money Demanded

The total amount of money that households and businesses wish to hold at a given time, depending on interest rates, income levels, and economic activity.