b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to har the excess above regular capacity at a cost of $53 per hundred bolts? Backlogs are not allowed. The inventory carrying c is $2 per hundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indica by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Period Forecast Output Regular Subcontracting Inventory Beginning Ending Average Cost Regular Subcontracting Inventory Total 275 2 300 250 300 5 280 6 275 7 270 Total 1,950
b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to har the excess above regular capacity at a cost of $53 per hundred bolts? Backlogs are not allowed. The inventory carrying c is $2 per hundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indica by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Period Forecast Output Regular Subcontracting Inventory Beginning Ending Average Cost Regular Subcontracting Inventory Total 275 2 300 250 300 5 280 6 275 7 270 Total 1,950
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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