Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthlydemand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desires tomaintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of themonth. Below is other critical data:Production cost per unit = $360Inventory carrying cost per month per unit = $50 (based on ending month inventory)Hiring cost per worker = $1,000Firing cost per worker = $2,000Beginning number of workers = 10a Click here for the Excel Data FileEach worker can produce 100 units per month.a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain toenter "O" wherever required.) Chase Plan - Variable WorkforceRegularProductionEndingInventoryMonthDemandWorkersHireFireRequired2,2004,40033,00044,400Total14,000b. Determine the cost of the two plans.Total cost for level planTotal cost for chase plan

Name: Appliances Inc. is preparing an aggregate production plan for washers
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Description: Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthlydemand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desire

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Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Below is other critical data: Production cost per unit = $360 Inventory carrying cost per month per unit $50 (based on ending month inventory) cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Click here for the Excel Data File Each worker can produce 100 units per month.

Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the chart. The company will have 650 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Below is other critical data: Production cost per unit = $360 Inventory carrying cost per month per unit $50 (based on ending month inventory) cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Click here for the Excel Data File Each worker can produce 100 units per month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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