Cost alternative to meet this aggregate demand

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A cement company is considering how to expand its capacity and they are examining the use of overtime or subcontracting on a quarterly basis as possible options. They have the following information about their operation: Aggregate demand = 30,000; 25,000; 27,000; and 31,000 Maximum capacity = 25,000 units Labor to produce one unit = 2.45 hours Cost of overtime = $10.50/hour Cost of subcontracting = $25.00/unit Given the above scenario, which is the least cost alternative to meet this aggregate demand? a. Use overtime b. Use subcontracting c. Use either overtime or subcontracting d. Use neither overtime or subcontracting

Reference no: EM131232270

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