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

Question 72

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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 = 50 workers Production per Employee = 250 units per quarter Hiring Cost = $1000 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $15 per unit per quarter If a level production strategy is used then the total cost of the plan (hiring cost, firing cost and inventory carrying cost)  is A)  $120,000. B)  $377,500. C)  $675,000. D)  $795,000. Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used then the total cost of the plan (hiring cost, firing cost and inventory carrying cost) is


A) $120,000.
B) $377,500.
C) $675,000.
D) $795,000.

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