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Currently the Firm Has 80 Workers Who Produce 800 Units

Question 9

Multiple Choice

Currently the firm has 80 workers who produce 800 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.The cost of hiring a worker is $100.The cost of firing a worker is $500.When using the pure chase strategy, what is the total cost for the year? The quarterly demand information is provided below.
Q1:20,000 units, Q2:100,000 units, Q3:60,000 units, Q4:153,000 units


A) $11,694,000
B) $11,889,375
C) $8,570,500
D) $35,000,345

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