Given the following forecast and cost information, determine the total cost of a plan that uses regular time production output of 600 units per month, overtime is used when needed up to a maximum of 60 units per month, and subcontracting is used if additional units are needed to meet the forecast Regular time cost $ 40.00per unit Overtime cost $ 60.00per unit (60 max) subcontracting cost $ 80.00per unit holding cost $ 10.00per unit per month month 1 forecast 563month 2 forecast 608month 3 forecast 648month 4 forecast 668month 5 forecast 666month 6 forecast 688 Show in Excel

Step 1Identify the production capacity and costs. Regular time production: 600 units/month at…

Answered: Given the following forecast and cost…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Given the following forecast and cost information,
determine the total cost of a plan that uses regular time
production output of 600 units per month, overtime is
used when needed up to a maximum of 60 units per
month, and subcontracting is used if additional units are needed to meet the forecast
Regular time cost	$ 40.00	per unit
Overtime cost	$ 60.00	per unit (60 max)
subcontracting cost	$ 80.00	per unit
holding cost	$ 10.00	per unit per month
month 1 forecast 563 month 2 forecast 608 month 3 forecast 648 month 4 forecast 668 month 5 forecast 666 month 6 forecast 688 Show in Excel

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