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Mary Rhodes, operations manager at Burnaby Furniture, has received estimates of demand requirements: July 1,000 Aug. 1,200 Sept. 1,400 Oct. 1,800 Nov. 1,800 Dec.

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Mary Rhodes, operations manager at Burnaby Furniture, has received estimates of demand requirements: July 1,000 Aug. 1,200 Sept. 1,400 Oct. 1,800 Nov. 1,800 Dec. 1,600 Assuming stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce, which performs at a current production level of 1,300 units per month. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $60 per unit cut back. Fill in the table below. (Enter your responses as whole numbers). Hire Layoff Month 1 July Demand 1000 Production (Units) (Units) 2 August 1200 3 September 1400 4 October 1800 5 November 1800 6 December 1600 The total hiring cost is $ . (Enter your response as a whole number.) The total layoff cost is $ (Enter your response as a whole number.) The total cost, excluding normal time labour costs, for Plan B is $ . (Enter your response as a whole number.)

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