Table 15.3 A Large Distribution Center Uses Some Part-Time Employees in Its

Multiple Choice

Table 15.3
A large distribution center uses some part-time employees in its workforce.Each part-time employee works a maximum of 80 hours per month.The workforce requirements (expressed as the number of part-time employees working the maximum regular time of 80 hours per month) are given in the following table for the next six periods. The relevant costs are:
Wages = $350/month/worker
Hiring cost = $100/worker
Layoff cost = $ 50/worker
Overtime cost = 150% of regular-time rate
The current workforce level is 60,and overtime cannot exceed 25% of regular-time capacity.
Use the spreadsheet approach to answer the following questions.
-Use the information in Table 15.3.The total cost of the staffing plan,including the cost of regular wages,hiring,and layoffs,using a chase strategy with hiring and layoffs but no overtime,is:

A) less than or equal to $125,000.
B) greater than $125,000 but less than or equal to $125,500.
C) greater than $125,500 but less than or equal to $126,000.
D) greater than $126,000.