Solved

It Costs $12 to Make a Single Unit Using Regular

Question 60

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? 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


A) $20,850
B) $19,750
C) $19,500
D) $20,550

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions