The Following Information Relates to a Company's Aggregate Production Planning

question 7

Multiple Choice

The following information relates to a company's aggregate production planning activities:

Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a level production strategy is used then the number of workers required for the plan is

• A)35
• B)75
• C)100
• D)125

Distinguish between relevant and irrelevant costs in various decision-making scenarios.

Understand and calculate contribution margin and contribution margin ratio.

Identify and compute the break-even point in units and dollars.

Compute variable and fixed costs from given data.

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Definitions:

Hyaline Cartilage

A type of smooth cartilage found on joint surfaces, in the respiratory tract, and in the fetal skeleton, providing support with some flexibility.

Fibrocartilage

A type of cartilage characterized by thick bundles of collagen fibers, found in areas requiring tough support or capable of withstanding heavy pressure, such as intervertebral discs.

Elastic Cartilage

A type of cartilage that contains elastic fiber networks and collagen fibers, providing strength and elasticity, found in the ear and epiglottis.

Loose Connective Tissue

A type of connective tissue characterized by a loosely organized matrix, which supports, binds together, and provides nutrients to surrounding tissues.