It Costs $10 to Make a Single Unit Using Regular

question 31

Multiple Choice

It costs $10 to make a single unit using regular production and $15 to make a single unit using overtime production.Total overtime production is limited to 1000 units for the five month period.The manufacturing plant has a regular production capacity of 250 units per month and 225 units in inventory at the start of the planning period.There is a $5 per unit charge for holding inventory at the end of each month and a limit of 600 units ending inventory for any period.What is the minimum cost production plan if the forecast must be met?

• A) $15,850
• B) $16,150
• C) $16,500
• D) $16,800

---

Definitions:

Administrative Manager

A professional responsible for managing and overseeing office operations and administrative staff.

Fertilizer

Fertilizer is a chemical or natural substance added to soil or land to increase its fertility and promote plant growth.

Yield Increase

The improvement in the amount of product produced from given resources, typically seen in manufacturing and farming outcomes.

Self-checkout Lanes

Automated checkout systems in retail environments that allow customers to scan, bag, and pay for their purchases without cashier assistance.