Calculate the Total Cost to Meet the Demand Using a Level

question 89

Multiple Choice

Calculate the total cost to meet the demand using a level production plan with overtime. Once overtime is approved the workers are on the job 12 hours each day for the full period. Each unit that cannot be completed with a level product plan costs the firm $150. Assume that the employees can only finish a whole unit and round up/down accordingly.

• A) $72,960
• B) $73,460
• C) $75,870
• D) $76,800
• E) $77,175