Osprey Fabrication Has the Following Aggregate Demand Requirements and Other

question 83

Essay

Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy,or Plan C-1350 level with the remainder by subcontracting?

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Definitions:

Operating Income

Income from a company's main business activities, excluding deductions for interest and taxes, showing the profitability from core operations.

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.