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

question 83

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:

Annual Profits

The total income a company generates in one fiscal year after all expenses and taxes have been subtracted from its total revenue.

Good Quality Product

A product characterized by excellence in materials, craftsmanship, performance, and durability, meeting or exceeding consumer expectations.

Duopoly Market

A market structure where two companies own all or nearly all of the market for a given product or service.

Quantity Rise

An increase in the amount of goods or services produced or supplied.