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13 September, 11:38

Centipede has asked you to develop a chase plan for the production of its earth moving equipment. Below is the beginning inventory, monthly demand, and relevant work force information. Determine the total hire/fire costs and the number of workers employed at the end of October. Note: The ending inventory for October should be 0. July Beginning Inventory 1200: Demand is July 3300; Aug 3000; Sept 2550; Oct 2400. Hiring costs $50 per worker; firing costs $100 per worker; production rate 15 units per month per worker; starting workforce 200 workers

A. $6,000 and 160 workers

B. $13,000 and 160 workers

C. $6,000 and 170 workers

D. $13,000 and 170 workers

E. $19,000 and 170 workers

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  1. 13 September, 13:24
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    The correct answer is B.

    Explanation:

    Giving the following information:

    Determine the tot9al hire/fire costs and the number of workers employed at the end of October. Note: The ending inventory for October should be 0. July Beginning Inventory 1200: Demand is July 3300; Aug 3000; Sept 2550; Oct 2400. Hiring costs $50 per worker; firing costs $100 per worker; production rate 15 units per month per worker; starting workforce 200 workers

    July = (3300 - 1200) / 15 = 140 workers

    August = 3000/15 = 200 workers

    September = 2550/15 = 170 workers

    October = 2400/15=160 workers

    Total cost = 60*100 + 60*50 + 30*100 + 10*100 = $13,000
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