A Firm Practices a Chase Strategy

Multiple Choice

A firm practices a chase strategy.Production last quarter was 1000.Demand over the next four quarters is estimated to be 900,700,1000,and 1000.Hiring cost is $20 per unit,and layoff cost is $5 per unit.Over the next year,what will be the sum of hiring and layoff costs?

A) $500
B) $2,500
C) $7,500
D) $7,000
E) $12,500