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

question 47

Multiple Choice

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

Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used the total cost of the production plan (hiring cost,firing cost,and inventory cost) is

• A)$60,000
• B)$275,000
• C)$335,000
• D)$610,000

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Definitions:

Stock Price

The present rate at which a company's stock is traded on the stock market.

Book Value

The net value of a company's assets as recorded on its balance sheet, and calculated by subtracting liabilities from the total value of assets.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, illustrating the trade-offs and opportunity costs in production.

Labor Force

Those 16 years of age and older who are either working or looking for work.