Currently the firm is using a pure level 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 . Of the following descriptions of the situation, what is true? The quarterly demand information is provided below. Q1:120,000 units, Q2:100,000 units, Q3:80,000 units, Q4:92,000 units
a. Throughout the year, no back orders occur
b. During the first quarter, 22,000 units were back ordered
c. A backorder occurred only during 1 quarter
d. A backorder occurred only during 3 quarter
B
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