Information about their operation-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 If they use overtime, what is the cost of overtime in quarter 1? a. $51,450 b. $125,000 c. $128,625 d . $150,000 e. $154,350

Reference no: EM131228660

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