Company maintains a level production strategy

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Reference no: EM131803994

Table 9.1

Quarter Forecast

1 80,000

2 110,000

3 100,000

4 110,000

Hiring Cost $100 per worker

Firing Cost $150 per worker

Inventory Carrying Cost $ 5 per unit

Production Per Employee 1000 units per/qtr

Beginning Work Force 100 workers

Using the data in Table 9.1, which of the following statements is true if the company maintains a level production strategy?

a) The total number of units inventoried for the 4-quarter period is 40,000 units.

b) The cost of the level production plan is $18,000.

c) There are 12,500 units inventoried in quarter 3.

d) A work force of 14 workers is maintained during the 4-quarter period.

SHOW THE CALCULATIONS

Reference no: EM131803994

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