Question: ASAP please with formula 2 3 4 ABCO makes snow blowers for the consumer market. Below is their forecast for the first 6 months next

 ASAP please with formula 2 3 4 ABCO makes snow blowers

for the consumer market. Below is their forecast for the first 6

ASAP please with formula

2 3 4 ABCO makes snow blowers for the consumer market. Below is their forecast for the first 6 months next year. They are interested in using level strategy to produce their needs. Beginning Inventory is 50 units. Inventory holding costs are $20 per unit per month. Backorder costs are $30 per unit per month. Regular labour is $75 per unit. Calculate the cost of this plan. Use formulas for all calculations. (5 marks) 5 6 7 8 9 Month 1 2 3 4 5 6 Total 625 500 500 550 600 600 525 525 525 525 525 525 10 Forecast 11 Output 12 Regular 13 Part Time 14 Overtime 15 Subcontract 16 Output - Forecast 17 Inventory 18 Beginning 19 Ending 20 Average 21 Backorder 22 Costs: 23 Regular 24 Part Time 25 Overtime 26 Subcontract 27 Hire/Layoff 28 Inventory 29 Back orders 30 Total 31 $75 32 2 33 ABCO hopes to avoid backorders and instead use overtime to make up any shortages to try and avoid backorders. Overtime costs $125 per unit. Calculate the cost of this plan. Use formulas for all calculations. Beginning inventory is 50 units. (5 marks) 34 35 36 Month 1 2 3 4 5 500 500 6 Total 625 550 600 37 Forecast 38 Output 39 600 Regular Part Time 525 525 525 525 525 40 525 Overtime 42 Subcontract 43 Output - Forecast 44 Inventory 45 Beginning 46 Ending 47 Average 48 Backorder 49 Costs: 50 Regular 51 Part Time 52 Overtime 53 Subcontract 54 Hire/Layoff 55 Inventory 56 Back orders 57 Total 58 $75 $125 62

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!