Question: Reconsider the FlexMan data from Exercise 4 . The firm is considering the option of changing workforce size with demand. The cost of hiring a

Reconsider the FlexMan data from Exercise 4. The firm is considering the option of changing workforce size with demand. The cost of hiring a new employee is $700 and the cost of a layoff is $1000. It takes an employee two months to reach full production capacity. During those two months, a new employee provides only 50 percent productivity. Anticipating a similar demand pattern next year, FlexMan aims to end the year with 6,300 employees.

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