Multiple Choice
It costs $12 to make a single unit using regular production and $15 to make a single unit using overtime production.Total overtime production is limited to 500 units for the five month period.The manufacturing plant has a regular production capacity of 250 units per month and 50 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 250 units ending inventory for any period.What is the lowest cost production plan if the forecast must be met?
A) $20,850
B) $19,750
C) $19,500
D) $20,550
Correct Answer:

Verified
Correct Answer:
Verified
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