A Paint Company Has the Following Aggregate Demand Requirements and Cost

question 62

Multiple Choice

A paint company has the following aggregate demand requirements and cost data for the upcoming year by quarter.
Table 2
$$\begin{array} { | l | l | } \hline \text { QUARTER } & \begin{array} { l } \text { FORECAST DEMAND } \\\text { (UNITS) }\end{array} \\\hline 1 & 1,200 \\\hline 2 & 1,500 \\\hline 3 & 1,900 \\\hline 4 & 1,000 \\\hline \text { TOTAL: } & 5,600 \\\hline\end{array}$$ $\begin{array}{ll}\text { Previous quarter's production: } & 900 \text { units } \\\hline \text { Beginning inventory: } & 0 \\\hline \text { Backorder costs: } & \$ 60 / \text { unit } \\\hline\text { Inventory-holding cost }\\\text { (on ending inventory) : } & \$ 12 / \text { unit/quarter } \\\hline \text { Hiring employees: } & \$ 30 / \text { unit increase } \\\hline \text { Firing employees: } & \$ 70 / \text { unit decrease } \\\hline\text { Unit cost: } & \$ 45 / \text { unit } \\\hline \text { Overtime cost: } & \$ 67.50 / \text { unit }\\\end{array}$ ____________________________________________________________________
-Using the data in Table 2, determine the inventory holding and backorder costs for the year if the paint company wants to use a pure level strategy, ending Quarter 4 with no inventory.

• A) $8,400
• B) $32,400
• C) $28,500
• D) $27,600

Understand the causes and effects of social loafing in team settings.

Differentiate between types of teams and their specific objectives.

Acknowledge the importance of team size and composition on team dynamics and effectiveness.

Appreciate the role of diversity and social sensitivity in team performance.

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Definitions:

Financial Managers

Professionals responsible for the financial health of an organization, overseeing investment strategies, planning, and managing financial reports.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.

Payables Financing

A form of short-term borrowing where a company finances its accounts payables through a third party.

Prompt Payment Discount

A discount offered to buyers for paying their invoices early, encouraging faster payments.