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It Costs $10 to Make a Single Unit Using Regular

Question 31

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It costs $10 to make a single unit using regular production and $15 to make a single unit using overtime production.Total overtime production is limited to 1000 units for the five month period.The manufacturing plant has a regular production capacity of 250 units per month and 225 units in inventory at the start of the planning period.There is a $5 per unit charge for holding inventory at the end of each month and a limit of 600 units ending inventory for any period.What is the minimum cost production plan if the forecast must be met? It costs $10 to make a single unit using regular production and $15 to make a single unit using overtime production.Total overtime production is limited to 1000 units for the five month period.The manufacturing plant has a regular production capacity of 250 units per month and 225 units in inventory at the start of the planning period.There is a $5 per unit charge for holding inventory at the end of each month and a limit of 600 units ending inventory for any period.What is the minimum cost production plan if the forecast must be met?   A)  $15,850 B)  $16,150 C)  $16,500 D)  $16,800


A) $15,850
B) $16,150
C) $16,500
D) $16,800

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