Scenario 8 The Labor Contract at the Plant Prohibits Both Overtime and Problem

question 47

Multiple Choice

Scenario 8.3 - Mousetraps
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10.
$$\begin{array} { | l | c | c | c | c | c | } \hline & \text { July } & \text { August } & \text { September } & \text { October } & \text { November } \\\hline \text { Forecast } & 800 & 650 & 450 & 550 & 900 \\\hline \text { Beginning Inventory } & 140 & & & & \\\hline \text { Regular Time } & & & & & \\\hline \text { Overtime } & & & & & \\\hline \text { Subcontracting } & & & & & \\\hline \text { Ending Inventory } & & & & & \\\hline\end{array}$$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-What is the optimal total cost of the aggregate plan developed to address Scenario 8.3?

• A)$47,200
• B)$49,960
• C)$50,400
• D)$51,325

Recognize the reporting requirements for discontinued operations.

Understand the concepts of pro forma income and its exclusions.

Learn the strategies for evaluating financial statements, including ratio analysis, horizontal and vertical analysis.

Understand the interest of different stakeholders (creditors, stockholders) in financial statement analysis.

---

Definitions:

Violates An Injunction

Engaging in an action that disobeys a court's legally enforceable order or ruling, typically resulting in legal penalties.

Contempt Of Court

Contempt of court refers to acts that disrespect the court or its processes, or that obstruct the administration of justice, and may be punishable by fines or imprisonment.

Pay A Fine

To submit a monetary penalty imposed by a court or regulatory agency as punishment for an offense or infringement.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than simply paying damages for failing to do so.