A company has the cost structure shown in the table and faces a demand in July that exceeds capacity by $200$ units. They enter June with an inventory of zero and a demand equal to capacity. Their best course of action in order to completely fill all of the orders for both June and July by the end of July is$$ to:

Managerial Lever

Cost

Regular production

$$$$1,000/$unit

Overtime production

$$$$1,300/$unit

Subcontracting

$$$$1,200/$unit

Inventory holding

$$$$100/$unit$/$month

Backlog cost

$$$$400/$unit$/$month