When using a pure chase strategy with hires and fires, calculate the number of employees needed to satisfy each period’s demand. Once you have established the number of employees needed, either hire or fire as required. Use the following data and the pure chase strategy to calculate the cost of satisfying demand in Periods 1 through 8:
After evaluating the chase strategy, select all statements below which is are TRUE.
The total regular-time labor cost is $1,440,000
The total hiring cost is larger than the total firing cost.
The total firing cost is larger than the total hiring cost.
Overtime labor cost is $200,000
The total hiring cost is $62,400
The total production cost is $1,548,900
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