Using the Given Information,determine the Following

question 28

Essay

Using the given information,determine the following.
a.What is total forecasted demand?
b.What is total regular time capacity?
c.How should overtime capacity be utilized?
d.What are total regular time costs?
e.What are total overtime costs?
f.What are total carrying costs?
g.What are total backorder costs?
h.What are total costs for each period?
i.What are total costs for the six periods?
j.If hiring cost is $500 and firing cost if $400,would it be more economical on a per unit basis to use overtime or to hire and fire a temporary person (who can produce a maximum of 40 units per period)?
What would be the difference in total costs for the six periods?

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Definitions:

Right of Inspection

The legal right to examine and review a company's books, records, and documents, typically granted to directors, officers, and shareholders.

Nonconforming Goods

Goods that fail to meet the specifications or standards outlined in a contract.

Course of Dealing

A term defining the established behavior and interaction patterns between contracting parties over time, building a context for interpreting their agreements.

Risk of Loss

denotes the possibility that an asset or investment's value will decrease, reflecting the chance of losing on an investment or possession.