Wiedmer Corporation Is Preparing an Aggregate Production Plan for Widgets

question 29

Multiple Choice

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.CHASE PLAN
What is the inventory carrying cost of a chase plan accomplished through hiring and firing?

• A)0
• B)$200
• C)$1,000
• D)$2,000

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Definitions:

Open Wound

A break in the skin or mucous membrane exposing internal tissue to the external environment.

Loss of Sensation

A reduction or absence of the ability to perceive stimuli through touch, often indicative of nerve damage or neurological conditions.

Preservative

A substance added to products such as foods, pharmaceuticals, and cosmetics to prevent spoilage or degradation by microbial growth or undesirable chemical changes.

Formaldehyde Solution

A watery solution containing formaldehyde, a chemical used as a disinfectant, preservative, or in various industrial applications.