Consider the Estimated Aggregate Demand for a Company's Ski Product

question 71

Multiple Choice

Consider the estimated aggregate demand for a company's ski product line for the upcoming year in the following table.Calculate the regular time production cost for January using the level production strategy.Assume the regular time production cost as $200/pair of skis,the average monthly inventory holding cost is $20/pair of skis per month,and the beginning inventory for January is 8,000 units. $$\begin{array} { | c | c | c | c | } \hline \text { Month } & \begin{array} { c } \text { Demand } \\\text { (in pairs } \\\text { of unit) }\end{array} & \text { Month } & \begin{array} { c } \text { Demand } \\\text { (in pairs } \\\text { of units) }\end{array} \\\hline \text { J an } & 8,000 & \text { J uly } & 1,000 \\\hline \text { Feb } & 7,000 & \text { Aug } & 1,300 \\\hline \text { Mar } & 5,000 & \text { Sept } & 2,000 \\\hline \text { Apr } & 4,000 & \text { Oct } & 3,000 \\\hline \text { May } & 2,000 & \text { Nov } & 5,700 \\\hline \text { J une } & 2,000 & \text { Dec } & 7,000 \\\hline\end{array}$$

• A)$400,000
• B)$800,000
• C)$120,000
• D)$100,000

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Definitions:

Retention of Material

The ability to remember or retain information over time after the initial learning phase.

Retrograde Amnesia

The inability to remember experiences or learned information from before an injury happened or a disease started.

Anterograde Amnesia

A condition characterized by the inability to form new memories following the onset of the disorder, while memories from before the event remain intact.

Retroactive Interference

A memory problem that occurs when newly learned information interferes with the recall of previously learned information.