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löw air content, and natural flavors. the sugar content, the 10. Janson Enterprises (JE) produces video telephones for the home market. Quality is not quite as good as it could be at this point, but the selling price is low and Jason can study market response while spending more time on R&D. At this stage, however, JE needs to develop an aggregate production plan for the six months from January through June. You have been commissioned to create the plan. The following information should help: DIMAND AND WORKING DAYS JANUARY RARUARY MARCH APRII. MAY JUNH TUTAI S Demand forecast 500 600 650 800 g00 800 4.250 Number of working clays 22 125 19 21 21 22 20 COSTS Materials $100.00/unit Inventory holding cost Marginal cost of stockout Marginal cost of subcontracting S10.00/unit/month S20.00/unit/month $100.00/unit ($20O subcontracting cost less $100 material savings) Hiring and training cost Layoff cost Labor hours required SE0.00/worker S100.00/worker 4/unit Straight-time cost (first eight hours each day) Overtime cost (time and a half) S12.50/hour $18.75/hour INVENIORY 200 units Beginming inventory Safety stock required % of manth demand at is the cost of each of the following production strategies? A. Produce exactly to meet demand; vary work force (assuming opening workforce cqual to first month's requirements). B. Constant workforce; vary inventory and allow shortages only (assuming a starting work force of 10). : Constant work force of 10; use subcontracting

löw air content, and natural flavors. the sugar content, the 10. Janson Enterprises (JE) produces video telephones for the home market. Quality is not quite as good as it could be at this point, but the selling price is low and Jason can study market response while spending more time on R&D. At this stage, however, JE needs to develop an aggregate production plan for the six months from January through June. You have been commissioned to create the plan. The following information should help: DIMAND AND WORKING DAYS JANUARY RARUARY MARCH APRII. MAY JUNH TUTAI S Demand forecast 500 600 650 800 g00 800 4.250 Number of working clays 22 125 19 21 21 22 20 COSTS Materials $100.00/unit Inventory holding cost Marginal cost of stockout Marginal cost of subcontracting S10.00/unit/month S20.00/unit/month $100.00/unit ($20O subcontracting cost less $100 material savings) Hiring and training cost Layoff cost Labor hours required SE0.00/worker S100.00/worker 4/unit Straight-time cost (first eight hours each day) Overtime cost (time and a half) S12.50/hour $18.75/hour INVENIORY 200 units Beginming inventory Safety stock required % of manth demand at is the cost of each of the following production strategies? A. Produce exactly to meet demand; vary work force (assuming opening workforce cqual to first month's requirements). B. Constant workforce; vary inventory and allow shortages only (assuming a starting work force of 10). : Constant work force of 10; use subcontracting

FINANCIAL ACCOUNTING
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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Hat, low air content, and natural flavors. Tactors are the sugar content, the 10. Janson Enterprises (JE) produces video telephones for the home market. Quality is not quite as good as it could be at this point, but the selling price is low and Jason can study market response while spending more time on R&D. At this stage, however, JE needs to develop an aggregate production plan for the six months from January through June. You have been commissioned to create the plan. The following information should help: DIMAND AND WORKING DAYS JANUARY RanRUARY MARCH APRI MAY JUNH TUTN S Demand forecast Number of working days 500 600 650 800 900 800 4,250 22 19 21 21 22 20 125 COSTS Materials $100.00/unit Inventory holding cost Marginal cost of stockout Marginal cost of subcontracting S10.00/unit/month S20.00/unit/month $100.00/unit (S200 subcontracting cost less $100 material savings) Hiring and training cost Layoff cost Labor hours required $50.00/worker S100.00/worker 4/unit Straight-time cost (first eight hours each day) Overtime cost (time and a half) S12.50hour $18.75/hour INVENTORY Begiming inventory Safety stock required 200 units % of manth demand Wh at is the cost of each of the following production strategies? A. Produce cxactly to meet demand; vary work force (assuming opening workforce equal to first month's requirements). B. Constant workforce; vary inventory and allow shortages only (assuming a starting. work force of 10). C. Constant workforce of 10; use subcontracting
Transcribed Image Text:Hat, low air content, and natural flavors. Tactors are the sugar content, the 10. Janson Enterprises (JE) produces video telephones for the home market. Quality is not quite as good as it could be at this point, but the selling price is low and Jason can study market response while spending more time on R&D. At this stage, however, JE needs to develop an aggregate production plan for the six months from January through June. You have been commissioned to create the plan. The following information should help: DIMAND AND WORKING DAYS JANUARY RanRUARY MARCH APRI MAY JUNH TUTN S Demand forecast Number of working days 500 600 650 800 900 800 4,250 22 19 21 21 22 20 125 COSTS Materials $100.00/unit Inventory holding cost Marginal cost of stockout Marginal cost of subcontracting S10.00/unit/month S20.00/unit/month $100.00/unit (S200 subcontracting cost less $100 material savings) Hiring and training cost Layoff cost Labor hours required $50.00/worker S100.00/worker 4/unit Straight-time cost (first eight hours each day) Overtime cost (time and a half) S12.50hour $18.75/hour INVENTORY Begiming inventory Safety stock required 200 units % of manth demand Wh at is the cost of each of the following production strategies? A. Produce cxactly to meet demand; vary work force (assuming opening workforce equal to first month's requirements). B. Constant workforce; vary inventory and allow shortages only (assuming a starting. work force of 10). C. Constant workforce of 10; use subcontracting
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