Question: Current inventory is 9 0 units. Current capacity is 8 6 0 units per month. The average salary of production workers is $ 1 ,

Current inventory is 90 units. Current capacity is 860 units per month. The average salary of production workers is $1,300 per month. Material costs $140/unit. Each production worker accounts for 30 units per month. Overtime is paid at time and a half. Any increase or decrease in the production rate costs $45/unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory-holding costs are $39 per unit per month. Lost sales are valued at $65 per unit.

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