A Firm Practices a Pure Chase Strategy

question 27

Multiple Choice

A firm practices a pure chase strategy.Production last quarter was 1000.Demand over the next four quarters is estimated to be 900,700,1000,and 1000.Hiring cost is $20 per unit,and layoff cost is $5 per unit.Over the next year,what will be the sum of hiring and layoff costs?

• A)$500
• B)$2,500
• C)$7,500
• D)$7,000
• E)$12,500