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

A firm practices a pure level strategy. Production level is 700. Demand over the next four quarters is estimated to be 900, 700, 1100, and 1300. The extra units needed are ousourced to another company. Production cost is $20 per unit, and outsourcing cost is $5 per unit. Over the next year, what will be the sum of production and outsourcing costs? $17,500 $45,000 $75,000 $84,000 O $62,000

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