You are a management consultant for a 30-year old partner in a large law firm. In a meeting, your client says: "According to an
article in the New York Times, 57 percent of large law firms have a mandatory retirement age for partners in the firm. Before they retire, partners are paid directly for the work that they do, and, as owners, they are entitled to a share of the profits of the firm. Once they retire, partners do not receive either form of compensation. In light of this, I think we should eliminate mandatory retirement in order to gain a ‘competitive advantage’ in attracting high-quality lawyers to work for our firm. Of course, you are the expert."
1 answer:
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Answer: $ 30,290,000
Explanation:
For this question, the transportation table has been addressed below.
“X” indicates that there will be no possible production in the specific cell.
(i) The total cost of optimum production plan = (50,000 x 50) + (50,000 x 78) + (50,000 x 50) + (50,000 x 75) + (20,000 x 91) + (40,000 x 88) + (50,000 x 50) + (50,000 x 75) + (40,000 x 85) + (50,000 x 50) + (2,000 x 75)
= $ 30,290,000.
Therefore, the cost of the plan will be $30,290,000.
