Question: If the aggregate production strategy is to maintain a constant workforce that supports the lowest demand month and use subcontraction to support higher levels of

If the aggregate production strategy is to maintain a constant workforce that supports the lowest demand month and use subcontraction to support higher levels of demand, use the data in the table below to determine:

A. The Average Daily Demand from July thru December

B. How many workers will be required to produce at the lowest daily demand rate? Each worker works 8 hours per day and makes $10.00 per hour.

C. The total Subcontracting cost for each month.

D. The total incurred labor cost per month.

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Month	Expected Demand	Production Days	Demand Per Day (computed)
Jul	817	19	43
Aug	720	18	40
Sep	924	22	42
Oct	1,323	21	63
Nov	1,596	21	76
Dec	1,800	20	90
	7,180	121

Subcontracting cost per unit:	$20.00
Labor Hours to Produce a Unit:		2.0

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