It Costs $10 to Make a Single Unit Using Regular

question 66

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 with a zero ending inventory each month? $$\begin{array} { | l | c | } \hline { \text { Month } } & \text { Forecast } \\\hline \text { Tanuary } & 250 \\\hline \text { February } & 200 \\\hline \text { March } & 300 \\\hline \text { April } & 400 \\\hline \text { May } & 500 \\\hline\end{array}$$

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

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Definitions:

Cultural Perception

The way individuals interpret and understand phenomena through the lens of their own culture, including beliefs, values, and norms.

Short Phrase

A concise combination of words that often makes up a small part of a sentence or stands alone as a complete thought.

Nativist Approach

The theory that a genetically determined, innate mechanism directs the development of language.