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Wiedmer Corporation Is Preparing an Aggregate Production Plan for Widgets

question 31

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Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50
Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300
Firing cost per worker = $200 Beginning number of workers = 16
Each worker can produce = 50 units per month.LEVEL PLAN
Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory)  Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month.LEVEL PLAN   What is the total cost of the level plan? A) $250,000 B) $260,700 C) $252,700 D) $258,000 What is the total cost of the level plan?


Definitions:

Fertilization

The process by which male and female gametes unite to form a zygote, initiating the development of a new organism.

Oviduct

The tube through which an ovum or egg passes from an ovary, also known as the fallopian tube in humans.

Oral Contraceptive Pills

Medications taken by mouth for the purpose of preventing pregnancy, which typically contain hormones that inhibit ovulation.

Contraception

Contraception involves methods or devices used to prevent pregnancy as a result of sexual intercourse, encompassing a range of barrier, hormonal, and natural methods.

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