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Abc has traditionally used the hiring and firing of workers to accommodate the changes in demand for their products, but is considering maintaining a stable workforce and subcontracting production whe
Abc has traditionally used the hiring and firing of workers to accommodate the changes in demand for their products, but is considering maintaining a stable workforce and subcontracting production when demand exceeds the capability of the workforce. they currently have 30 workers, each capable of producing 100 units per quarter. it costs them $3000 to hire a worker and $5000 to fire the worker. if they subcontract the work, it will cost them $30 per unit above their normal production cost. given this information, should they continue their current practice or move to subcontracting the production over what their current workforce can produce?
