Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294. If a LEVEL PRODUCTION strategy is adopted with a constant production of 280 units per period. The regular production cost is RO 12 per unit, whereas the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. What is the total cost of regular production?
Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294. If a LEVEL PRODUCTION strategy is adopted with a constant production of 280 units per period. The regular production cost is RO 12 per unit, whereas the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. What is the total cost of regular production?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294. If a
LEVEL PRODUCTION strategy is adopted with a constant production of 280 units per period.
The regular production cost is RO 12 per unit, whereas the overtime and subcontract costs are
RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum
overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period.
What is the total cost of regular production?
Select one:
a. 500
O b. None is correct
O c. 600
O d. 20160
e. 22000
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