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

Question 43

Multiple Choice

The following information relates to a company's aggregate production planning activities: 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 chase demand strategy is used the total hiring and firing costs for the production plan is A) $67,500. B) $135,000. C) $202,500. D) $337,500. 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 chase demand strategy is used the total hiring and firing costs for the production plan is


A) $67,500.
B) $135,000.
C) $202,500.
D) $337,500.

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