Answer:
Mole Mfg.
Mole's total hire/fire costs and the number of workers employed at the end of October.
a) Hire/Fire Costs
i) Hire costs = 60 * $50 = $3,000
ii) Fire costs = 100 * $100 - $10,000
b) Number of workers employed at the end of October
= 160 workers
Explanation:
a) Data and Calculations:
Inventory requirement:
Beginning Inventory 1200
Month Demand Units Production No. of Workers No. of Hire No. of Fire
Starting workforce 200
July 3300 -1,200 2,100 140 (2,100/15) 60
Aug 3000 3,000 200 (3,000/15) 60
Sept 2550 2,550 170 (2,550/15) 30
Oct 2400 2,400 160 (2,400/15) 10
Total 60 100
