Supply/Demand Info Forecast (demand) Regular production Subcontract production Ending inventory Hired employees Fired employees Total employees Pre-Q1 Q1 49 6,300 6,300 4 45 Q2 6,020 6.020 2 43 The table below shows additional relevant information: Capacity Information & Cost Variables Production rate (units/employee/quarter) Subcontractor capacity (units/quarter) Regular production cost/unit Holding cost/unit/quarter Hiring cost/employee Firing cost/employee Subcontract cost/unit 140 520 $66 $9 $1,040 $2,300 $103 Q3 Q4 5,600 4,900 5,600 4,900 3 40 5 35 What is the overall total cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total hire cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) Number

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
icon
Related questions
Question
PP.51 A small manufacturer of specialty welding equipment has developed a chase production plan for the next four quarters, as seen below:
Supply/Demand Info
Pre-Q1
Q1
Q2
6,300
6,020
6,300
6,020
Forecast (demand)
Regular production
Subcontract production
Ending inventory
Hired employees
Fired employees
Total employees
49
4
45
2
43
The table below shows additional relevant information:
Capacity Information & Cost Variables
Production rate (units/employee/quarter)
Subcontractor capacity (units/quarter)
Regular production cost/unit
Holding cost/unit/quarter
Hiring cost/employee
Firing cost/employee
Subcontract cost/unit
140
520
$66
$9
$1,040
$2,300
$103
Q3
5,600
5,600
3
40
Q4
4,900
4,900
5
35
What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)
Number
What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.)
Number
What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)
Number
What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)
Number
What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)
Number
Transcribed Image Text:PP.51 A small manufacturer of specialty welding equipment has developed a chase production plan for the next four quarters, as seen below: Supply/Demand Info Pre-Q1 Q1 Q2 6,300 6,020 6,300 6,020 Forecast (demand) Regular production Subcontract production Ending inventory Hired employees Fired employees Total employees 49 4 45 2 43 The table below shows additional relevant information: Capacity Information & Cost Variables Production rate (units/employee/quarter) Subcontractor capacity (units/quarter) Regular production cost/unit Holding cost/unit/quarter Hiring cost/employee Firing cost/employee Subcontract cost/unit 140 520 $66 $9 $1,040 $2,300 $103 Q3 5,600 5,600 3 40 Q4 4,900 4,900 5 35 What is the overall total cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total hire cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) Number
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing