Question: b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the excess above

b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the excess above regular capacity at a cost of $55 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per hundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Period 2 3 4 5 7 Total 180 190 210 225 245 260 270 1,580 Forecast Output Regular Subcontracting Inventory Beginning Ending Average Cost Regular Subcontracting Inventory Total Problem 11-6 (Algo) Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a regular output capacity of 220(00) bolts per month, except for the seventh month, when capacity will be 250(00) bolts. Regular output has a cost of $25 per hundred bolts. Workers can be assigned to other jobs if production is less than regular. The beginning inventory is zero bolts. Month 2 5 Total Forecast 180 245 260 270 1,500 6 7 3 1 4 225 190 210 nuntimo is $65 ner hundred bolts. Regular

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