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

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

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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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
Transcribed Image Text: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
Transcribed Image Text: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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