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

Question 49

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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 = 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 level production strategy is used the total cost of the production plan (hiring cost, firing cost, and inventory cost)  is A)  $60,000. B)  $275,000. C)  $335,000. D)  $610,000. 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 level production strategy is used the total cost of the production plan (hiring cost, firing cost, and inventory cost) is


A) $60,000.
B) $275,000.
C) $335,000.
D) $610,000.

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