Consider the estimated aggregate demand for a company's ski product line for the upcoming year in the following table.Calculate the hiring cost for month of January using the chase production strategy.The average number of hours required to produce a pair of skis is 8 hours,and the number of worker hours per month is 160.The current workforce is 100.The beginning inventory for January is zero.The hiring cost per worker is $400. $$\begin{array} { | c | c | c | c | }
\hline \text { Month } & \begin{array} { c }
\text { Demand } \
\text { (in pairs } \
\text { of unit) }
\end{array} & \text { Month } & \begin{array} { c }
\text { Demand } \
\text { (in pairs } \
\text { of units) }
\end{array} \
\hline \text { J an } & 8,000 & \text { J uly } & 1,000 \
\hline \text { Feb } & 7,000 & \text { Aug } & 1,300 \
\hline \text { Mar } & 5,000 & \text { Sept } & 2,000 \
\hline \text { Apr } & 4,000 & \text { Oct } & 3,000 \
\hline \text { May } & 2,000 & \text { Nov } & 5,700 \
\hline \text { J une } & 2,000 & \text { Dec } & 7,000 \
\hline
\end{array}$$
A)$120,000
B)$150,000
C)$200,000
D)$100,000

Question

Consider the estimated aggregate demand for a company's ski product line for the upcoming year in the following table.Calculate the hiring cost for month of January using the chase production strategy.The average number of hours required to produce a pair of skis is 8 hours,and the number of worker hours per month is 160.The current workforce is 100.The beginning inventory for January is zero.The hiring cost per worker is $400. $$\begin{array} { | c | c | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Demand } \
\text { (in pairs } \
\text { of unit) }
\end{array} & \text { Month } & \begin{array} { c } 
\text { Demand } \
\text { (in pairs } \
\text { of units) }
\end{array} \
\hline \text { J an } & 8,000 & \text { J uly } & 1,000 \
\hline \text { Feb } & 7,000 & \text { Aug } & 1,300 \
\hline \text { Mar } & 5,000 & \text { Sept } & 2,000 \
\hline \text { Apr } & 4,000 & \text { Oct } & 3,000 \
\hline \text { May } & 2,000 & \text { Nov } & 5,700 \
\hline \text { J une } & 2,000 & \text { Dec } & 7,000 \
\hline
\end{array}$$
A)$120,000
B)$150,000
C)$200,000
D)$100,000

Quizplus · Accepted Answer

To calculate the hiring cost for January using the chase production strategy, first determine the number of workers needed to meet January's demand. January's demand is 8,000 pairs of skis. Each pair requires 8 hours to produce, so total hours needed = 8,000 pairs * 8 hours/pair = 64,000 hours. With each worker providing 160 hours per month, the total number of workers required = 64,000 hours / 160 hours/worker = 400 workers. The current workforce is 100 workers, so 300 additional workers need to be hired. The hiring cost per worker is $400, so the total hiring cost = 300 workers * $400/worker = $120,000.

Consider the Estimated Aggregate Demand for a Company's Ski Product