Costs incurred following the chase production strategy

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Reference no: EM131729912

For the next 4 questions follow the chase production strategy. Absorb variations in demand by changing the size of the workforce. When additional employees are hired or fired, they cannot be fractions of a person. You must round up to the next whole person. When you round up, all those employees work the full month which could result in some inventory that is carried to the next period. Ending inventory should be as low as possible each month.

1. How many units are produced for the year using the chase production strategy?

A. Less than 1,800,000

B. Between 1,800,000 and 2,000,000

C. Between 2,000,001 and 2,200,000

D. More than 2,200,000

2. What is the annual total cost of firing employees in this example following the chase production strategy?

A. Between $50,000 and $100,000

B. Between $100,001 and $150,000

C. Between $150,001 and $200,000

D. Greater than $200,001

3. What are the total costs incurred following the chase production strategy?

A. Less than $73,000,000

B. Between $73,000,001 and $75,000,000

C. Between $75,000,001 and $77,000,000

D. Greater than $77,000,001

4. How many workers are required in July following the chase production strategy?

A. 15

B. 16

C. 17

D. 18

Please show all work.

Reference no: EM131729912

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