Question: Material and Overhead $ / Unit 1 5 0 Inventory Holding Cost $ / Unit on End Inv. 2 . 5 Regular Time Production $

Material and Overhead $/Unit 150
Inventory Holding Cost $/Unit on End Inv. 2.5
Regular Time Production $/Hour 14
Overtime Production $/Hour 21
Max OT as % of Regular Time Production 20
Subcontracting $/Unit 275
Cost to Fire $/Person 700
Cost to Hire $/Person 1050
Labor Hours/Unit 2
Productiion Hours/Day 10
Beginning Inventory Level (Units)850
Desired Minimun Monthly End Inv. (Units)600

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