Question: A firm practices a pure level strategy. Production level is 900. Demand over the next four quarters is estimated to be 900, 700, 1100, and

A firm practices a pure level strategy. Production level is 900. Demand over the next four quarters is estimated to be 900, 700, 1100, and 1300. The extra units produced are stored in a warehouse. The extra units needed are Ousourced to another company, Production cost is $20 per unit, inventory cost is $10 per unit, and outsourcing cost is $5 per unit. Over the next year, what will be the sum of production, inventory, and outsourcing costs? $76,000 $87.500 $69.500 $84,000 $88,000

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