Question: 2 Spoints A company that uses a level output strategy for production has the forecast below. Regular tine costa $25 per unit. Carrying inventory costs

2 Spoints A company that uses a level output strategy for production has the forecast below. Regular tine costa $25 per unit. Carrying inventory costs $2 per unit and a backlog costa $8 per unit. Period 1 2 3 4 5 6 Total Forecast 250 250 450 500 600 350 2400 If the company reduces regular production to 375 unit and schedules 75 units of overtime when a shortfall is forecasted, what it the new cost of this plan? Overtime costs $40 per units

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