able 2. Cost Information

Cost Information
Inventory carrying cost	$ 5 per unit per month
Subcontracting cost per unit	$10 per unit
Average pay rate	$ 5 per hour ($40 per day)
Overtime pay rate	$ 7 per hour (above 8 hours per day)
Labor-hours to produce a unit	1.6 hours per unit
Cost of increasing daily production rate (hiring and training)	$300 per unit
Cost of decreasing daily production rate (layoffs)	$600 per unit