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

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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