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

Question

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

Quizplus · Accepted Answer

The Answer of 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

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