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#2 Given the following forecast and steady regular output of 550 every month, what total cost...

#2 Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum of 50 units a month, and subcontracting is limited to a maximum of 10 units a month? Unit costs are:

Regular output $20

Overtime $30

Subcontract $25

Average Inventory $10

Backlog $18

Month 1 2      3      4       5       6

Forecast           540   540   570   590   600   580

Business   Operations-Management   
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