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

---

Definitions:

Extensive Decision Making

A complex cognitive process requiring significant information gathering and evaluation, typically for high-stake or novel decisions.

Condominium

A type of real estate ownership where an individual owns a unit within a larger property, with shared ownership of common areas.

Annual Dentist Appointment

A yearly scheduled visit to a dentist for the examination and maintenance of oral health, including preventative care and treatment of dental issues.

Purchase Dissonance

Tension on the part of a buyer regarding whether the right decision was made in purchasing a product.