Another family of products for Mesa Table Company has the following projected monthly demand:
There are currently 30 workers each capable of producing 50 tables per month. They have a no-inventory policy in this area because of lack of space. There is also no subcontractor for this line. They can layoff workers at a cost of $5,000 per worker. To bring them back costs an additional $4,000 per worker. The marketing department has suggested that if they start a promotion campaign immediately they can increase the demand during the last 4 months to 750 per month. The promotional campaign will cost the company $35,000. The company recognizes a cost of $300 per table in the event of a shortage. Based on financial considerations, should they give the marketing department permission to start the campaign?