Question: I do not know how to do this. Please help me to solve this. PP.52 A manufacturer of solid state drives (SSDs) has projected the

I do not know how to do this.
Please help me to solve this.
PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info Beginning Jan Feb Mar Apr May Jun Forecast (demand) 50.000 59.200 48,600 62.200 60.200 55,800 Regular production Overtime production Subcontract production Ending inventory 5.800 Hired employees Fired employees Total employees 220 Cost variables are as follows: Cost Variables Labor cost hour S18 Overtime cost/unit $38 Subcontracting cost/unit $30 Holding cost/unit/month $14 Hiring cost employee $2,600 Firing cost employee $5,800 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/SSD 4 Regular production units/employee/month 200 Max regular production/month 56,600 Max overtime production/month 4,000 Max subcontractor production/month 5,200 Assuming the company ONLY uses overtime and/or subcontract production if regular production capacity is not sufficient, answer the following questions: What is the regular production cost (over the six months from January through June) for a CHASE production plan? (Display your answer to the nearest whole number.) What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) What is the total hire cost for this production plan? (Display your answer to the nearest whole number.) What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.)Step by Step Solution
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