Question: APP Trial and Error (Chase Demand and Subcontracting) Given the following information: Period Demand Regular Production Capacity = 3,000 units/period Regular Production Cost = $10

APP Trial and Error (Chase Demand and
APP Trial and Error (Chase Demand and Subcontracting) Given the following information: Period Demand Regular Production Capacity = 3,000 units/period Regular Production Cost = $10 /unit 1 1,100 Overtime Capacity = 500 units/period Overtime Cost = $15 / unit 2 4,000 Subcontracting Capacity = 4,000 units Subcontracting Cost = $20/unit 3 4,600 Beginning Inventory = 0 units Inventory Cost = $5 /unit/period 4 2,300 Production rate/worker = 50 units/period Backorder Cost = $7/unit/period Beginning Workforce = 60 workers Hiring Cost = $2,000 / worker Firing Cost = $1,500 / worker The company has decided to switch to a Trial and Error production plan combining Chase Demand with Subcontracting strategies. How many workers will the company need to hire at the beginning of the 2nd quarter? O 58 O 40 O 32 38 O 80 O 26

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