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

Question 4

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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 = 35 workers Production per Employee = 1,250 units per quarter Hiring Cost = $500 per worker Firing Cost = $1,000 per worker Inventory Carrying Cost = $20 per unit per quarter If a level production strategy is used,then the cost of the level production plan (inventory costs plus hiring and firing costs) is A) $20,000 B) $645,000 C) $1,250,000 D) $1,270,000 Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a level production strategy is used,then the cost of the level production plan (inventory costs plus hiring and firing costs) is


A) $20,000
B) $645,000
C) $1,250,000
D) $1,270,000

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