Determine the total cost for this plan given the following forecast:Month 1 2 3 4 5 6Forecast 380 400 420 440 460 480Use steady regular output of 400 units per month, use overtime as needed for up to 40 units permonth, and use subcontracting to make up any needed output to match the forecast. Unit costs are:Regular output = $25Overtime = $40Subcontract = $60Average Balance Inventory = $15
Determine the total cost for this plan given the following forecast:Month 1 2 3 4 5 6Forecast 380 400 420 440 460 480Use steady regular output of 400 units per month, use overtime as needed for up to 40 units permonth, and use subcontracting to make up any needed output to match the forecast. Unit costs are:Regular output = $25Overtime = $40Subcontract = $60Average Balance Inventory = $15
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Determine the total cost for this plan given the following forecast:
Month 1 2 3 4 5 6
Forecast 380 400 420 440 460 480
Use steady regular output of 400 units per month, use overtime as needed for up to 40 units per
month, and use subcontracting to make up any needed output to match the
Regular output = $25
Overtime = $40
Subcontract = $60
Average Balance Inventory = $15
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