FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Livingston Fabrication has created the following aggregate plan for the next five months:
August
September
November
1,500,000
1,500,000
3,000,000
Forecasted
Demand (units of
finished goods):
Production Plan: 2,000,000
2,000,000
a. 64
October
2,000,000
b. none
c. 112
d. 224
e. 145
2,000,000 2,000,000
December
500,000
Assume that Livingston will have nothing in inventory at the end of July. Livingston employs
1,000 production assembly workers and it takes one production assembly worker 5 minutes to
assemble one unit of finished good. (The unit is complete at that point.) Each production assembly
worker can provide 150 hours of assembly time a month without requiring overtime pay.
2,000,000
Livingston wants to complete this plan without working any overtime in assembly. Logically, how
many additional production assembly workers should Livingston hire to start in August?
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Transcribed Image Text:Livingston Fabrication has created the following aggregate plan for the next five months: August September November 1,500,000 1,500,000 3,000,000 Forecasted Demand (units of finished goods): Production Plan: 2,000,000 2,000,000 a. 64 October 2,000,000 b. none c. 112 d. 224 e. 145 2,000,000 2,000,000 December 500,000 Assume that Livingston will have nothing in inventory at the end of July. Livingston employs 1,000 production assembly workers and it takes one production assembly worker 5 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 150 hours of assembly time a month without requiring overtime pay. 2,000,000 Livingston wants to complete this plan without working any overtime in assembly. Logically, how many additional production assembly workers should Livingston hire to start in August?
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