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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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