Centipede has asked you to develop a chase plan for the production of its earth moving equipment. Below is the beginning inventory, monthly demand, and relevant work force information. Determine the total hire/fire costs and the number of workers employed at the end of October. Note: The ending inventory for October should be 0. July Beginning Inventory 1200: Demand is July 3300; Aug 3000; Sept 2550; Oct 2400. Hiring costs $50 per worker; firing costs $100 per worker; production rate 15 units per month per worker; starting workforce 200 workers
A. $6,000 and 160 workers
B. $13,000 and 160 workers
C. $6,000 and 170 workers
D. $13,000 and 170 workers
E. $19,000 and 170 workers

Determine the tot9al hire/fire costs and the number of workers employed at the end of October. Note: The ending inventory for October should be 0. July Beginning Inventory 1200: Demand is July 3300; Aug 3000; Sept 2550; Oct 2400. Hiring costs $50 per worker; firing costs $100 per worker; production rate 15 units per month per worker; starting workforce 200 workers

July= (3300 - 1200)/15= 140 workers

August= 3000/15= 200 workers

September= 2550/15= 170 workers

October= 2400/15=160 workers

Total cost= 60*100 + 60*50 + 30*100 + 10*100= $13,000