Jones Corporation Is Preparing an Aggregate Production Plan for Washers

question 4

Multiple Choice

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters.The company's expected quarterly demand is given in the following chart.The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter.Following is other critical data: Production cost per unit = $250
Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000
Firing cost per worker = $2,000 Beginning number of workers = 10
Each worker can produce 100 units per quarter.
Any worker on the staff at the end of the year will not be fired at that time.
Given this data, what is the total cost of a LEVEL plan?

• A)$5,000,000
• B)$5,140,000
• C)$5,110,000
• D)$5,740,000

---

Definitions:

Professionally Installed

Refers to equipment or systems setup and configured by experts or certified technicians, ensuring optimal performance and compliance with standards.

Installation Fee

A charge for setting up or installing a product, service, or system.

Gross Domestic Product

The total monetary value of all goods and services produced by a country's economy over a specified period.

IBM Stock

Shares of ownership in the International Business Machines Corporation, a multinational technology and consulting company.