Question: Given that a chase strategy is used, regular production capacity is 4,000 units with a per unit cost of $15, overtime capacity may be used
Given that a chase strategy is used, regular production capacity is 4,000 units with a per unit cost of $15, overtime capacity may be used with a per unit cost of $ 24, forecasted demand for the month is 5,300 units, beginning inventory is 880 units, desired end of month inventory is 600 units.
What is the total cost of production in this month to match the sales plan?
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