What is the total cost to produce the disks for the year

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Reference no: EM131002923

Computer Products is planning on using a work force capable of producing 2520 units in any quarter. If all of the production is not required in a quarter, all of the workers will continue to be employed and there will be underutilization. During Quarters 1 and 2, it will meet any demand not filled with this workforce working straight time through a combination of overtime and outsourcing. Overtime and outsourcing will each produce 50% of the demand not met through straight time production by the company's workforce. Beginning in Quarter 3, the company will use a matching demand strategy. Ignoring the material cost, what is the total cost to produce the disks for the year? All workers will be fully utilized each quarter, in other words, there is no underutilization.

Reference no: EM131002923

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