Question: Correct the answers marked as wrong What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)1,607,200wrong What
Correct the answers marked as wrong
What is the overall total cost for this production plan? (Display your answer to the nearest whole number.)1,607,200wrong What is the total regular production cost for this production plan? (Display your answer to the nearest whole number.)1,592,500correct What is the total holding cost for this production plan? (Display your answer to the nearest whole number.)0correct What is the total hire cost for this production plan? (Display your answer to the nearest whole number.)9,000wrong What is the total fire cost for this production plan? (Display your answer to the nearest whole number.)5,700correct
| Supply and Demand | Q1 | Q2 | Q3 | Q4 | |
| Forecasted sales | 5,500 | 5,750 | 5,500 | 6,000 | |
| Regular production | 5500 | 5750 | 5500 | 6000 | |
| Subcontract production | |||||
| Ending inventory | - | - | - | - | |
| Hired employees | 2 | 2 | 4 | ||
| Fired employees | 2 | ||||
| Total employees | 42 | 44 | 46 | 44 | 48 |
| Cost and Other Information | |
| Production rate (units/emp/qtr) | 125 |
| Max subcontract production/mo | 470 |
| Regular production cost/unit | $70 |
| Subcontract unit cost | $117 |
| Holding cost/unit/quarter | $9 |
| Hiring cost/employee | $900 |
| Firing cost/employee | $2,850 |
| Calculated Costs | Q1 | Q2 | Q3 | Q4 | Year Total | |
| Regular production cost | 385,000 | 402,500 | 385,000 | 420,000 | 1,592,500 | |
| Subcontract cost | - | - | - | - | - | |
| Inventory holding cost | - | - | - | - | - | |
| Hire cost | 1,800 | 1,800 | 1,800 | 3,600 | 9,000 | |
| Fire cost | - | - | 5,700 | - | 5,700 | |
| Total Cost by Period | 386,800 | 404,300 | 392,500 | 423,600 | 1,607,200 |
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