Question: A company has the cost structure shown in the table and faces a demand in July that exceeds capacity by 2 0 0 units. They
A company has the cost structure shown in the table and faces a demand in July that exceeds capacity by units. They enter June with an inventory of 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:
table Managerial Lever,CostRegular production,$ unitOvertime production,$ unitSubcontracting$ unitInventory holding,$ unitmonthBacklog cost$ unitmonth
A subcontract units in July and use of their regular capacity in both June and July.
B produce units using overtime in July and use of their regular capacity in both June and July.
C subcontract units in both June and July and use of their regular capacity in both June and July.
D subcontract units in June and use of their regular capacity in both June and July.
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