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

question 38

Multiple Choice

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a chase demand strategy is used then the number of workers hired in quarter 4 is

• A) 0.
• B) 15.
• C) 75.
• D) 125.

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Definitions:

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable. This can happen due to factors like market inefficiencies, taxes, or subsidies.

Corporation's Owners

Individuals or entities that hold shares of stock in a corporation, giving them ownership rights and interest in the company's profitability and governance.

Tax Collector

An official or entity responsible for collecting taxes on behalf of a government.