Osprey Fabrication Has the Following Aggregate Demand Requirements and Other

question 89

Essay

Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
$\begin{array}{|l|l|l|l|}\hline\text { Quarter}&\text { Demand }& \text { Previous quarter's output } &1300 \text { units }\\\hline1&1400& \text { Beginning inventory } & 0\text { units } \\\hline2&1200& \text { Stockout cost } & \$ 50 \text { per unit } \\\hline&&&\$ 10 \text { per unit at end of } \\3&1600& \text { Inventory holding cost } &\text { quarter }\\\hline 4&1500&\text { Hiring workers } & \$ 4 0\text { per unit } \\\hline &&\text { Laying off workers } & \$ 80 \text { per unit } \\\hline &&\text { Subcontracting cost } &\$ 60 \text { per unit }\\\hline&& \text { Unit cost } & \$ 30 \text { per unit } \\\hline &&\text { Overtime } & \$ 15 \text { extra per unit }\\\hline\end{array}$

Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-1350 level with the remainder by subcontracting?

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Definitions:

End-Of-Period Spreadsheet

A comprehensive document or tool used to compile accounting information before finalizing financial statements, aiding in the review and adjustment of account balances.

Total

This refers to the sum or aggregate amount of any given set of numbers or measures.

Columns Balance

The process of verifying that the sum of debit values equals the sum of credit values in an accounting system, ensuring accuracy in records.

Adjusted Trial Balance

A compilation of all account records and their corresponding balances, updated following adjustment entries, utilized for creating financial reports.