15 50 7 Beginning Workers Beginning inventory - Productive hours/worker/day- Units per worker per month Paid hours/worker/day Working days in month 40 8 20 Materials Holding costs - Marginal cost of backorder $1,800 $550 $800 Hiring and training cost $500 Layoff costs - $800 Straight time labor cost/hr. $30 Mar Feb 715 35 675 Apr 985 5 May 1.125 20 June 575 15 0 Chase Strategy Jan Demand 575 Beginning Inv. 50 Net 525 Requirements Beginning Workers Hired 0 Fired 1 6B0 675 980 1.105 560 15 14 17 17 25 28 3 0 8 3 O 0 0 0 18 MacBook Pro Feb 715 35 Mar 675 Apr 985 5 May 1.125 20 June 575 15 0 680 675 980 1.105 560 14 17 17 25 28 3 0 8 3 0 Chase Strategy Jan Demand 575 Beginning Inv. 50 Net 525 Requirements Beginning 15 Workers Hired 0 Fired 1 Reg. Workers 14 Production 560 Ending 35 Inventory Material Cost Backorder Cost Labor Cost 0 0 0 0 14 17 17 25 14 28 1.120 680 680 1,000 560 0 5 20 15 0 What is the total labor cost? $515.200 $552,000 $561,600 $624,000