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

Multiple Choice

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