Table 15.2 Archie Toys Is a Retailer Operating Out of Wichita,Kansas.It Experiences

question 134

Multiple Choice

Table 15.2
Archie Toys is a retailer operating out of Wichita,Kansas.It experiences a seasonal demand pattern for its services.Labor requirements over a typical six-month period follow.The workforce requirements (expressed as number of employees) are given in the following table for the next six periods. Costs associated with operations are as follows:
Wages = $800 per worker per month
Hiring cost = $300 per worker
Layoff cost = $200 per worker
The current workforce level is nine workers,and the undertime is paid for.Use the spreadsheet approach and the preceding data to answer the following questions.
-Use the information in Table 15.2.The total cost of the staffing plan,using a level strategy in which no overtime is allowed and the undertime paid for,is:

• A)less than or equal to $60,000.
• B)greater than $60,000 but less than or equal to $65,000.
• C)greater than $65,000 but less than or equal to $70,000.
• D)greater than $70,000.

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Definitions:

Gains From Trade

The extra output that trading partners obtain through specialization of production and exchange of goods and services.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors, leading to more efficient international trade.

Domestic Opportunity Cost

The cost of forgoing the next best alternative use of resources within a particular country when choosing one economic action over others.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than others.