Currently the firm is using a pure chase strategy.It has 60 workers who produce 1200 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.The cost of hiring a worker is $50.The cost of firing a worker is $200.Calculate the cost associated with changing capacity.
Q1: 120,000$\quad$ Q2: 100,000$\quad$ Q3: 80,000$\quad$ Q4: 92,000

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The Answer of Currently the firm is using a pure chase strategy.It has 60 workers who produce 1200 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.The cost of hiring a worker is $50.The cost of firing a worker is $200.Calculate the cost associated with changing capacity.
Q1: 120,000$\quad$ Q2: 100,000$\quad$ Q3: 80,000$\quad$ Q4: 92,000

Currently the Firm Is Using a Pure Chase Strategy \quad Q2: 100,000

Currently the Firm Is Using a Pure Chase Strategy $\quad$ Q2: 100,000