ZENTECH has the following aggregate demand requirements andother data for the upcoming four quarters.Quarter Demand2341400120016001500Previous quarter'soutputBeginning inventoryStockout costInventory holding costHiring workersFiring workersSubcontracting cost1300 units0 units$50 per unit$10 per unit at end ofquarter$40 per unit$80 per unit$60 per unit Inventory holding costHiring workersFiring workersSubcontracting costUnit costOvertimeO $215,000O $179,500$203,600$10 per unit at end ofquarterO $183,500O $164,750$40 per unit$80 per unitWhat is the total cost of a strategy of chase demand by hiring andfiring?$60 per unit$30 per unit$15 extra per unit

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What is the total cost of a strategy of chase demand by hiring and firing?

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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Question

ZENTECH has the following aggregate demand requirements and
other data for the upcoming four quarters.
Quarter Demand
2
3
4
1400
1200
1600
1500
Previous quarter's
output
Beginning inventory
Stockout cost
Inventory holding cost
Hiring workers
Firing workers
Subcontracting cost
1300 units
0 units
$50 per unit
$10 per unit at end of
quarter
$40 per unit
$80 per unit
$60 per unit

Inventory holding cost
Hiring workers
Firing workers
Subcontracting cost
Unit cost
Overtime
O $215,000
O $179,500
$203,600
$10 per unit at end of
quarter
O $183,500
O $164,750
$40 per unit
$80 per unit
What is the total cost of a strategy of chase demand by hiring and
firing?
$60 per unit
$30 per unit
$15 extra per unit

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