What is the cost of the plan

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Demand for iwatch for the next 6 months is projected to be: Jan 750 units, feb 600,mar 700 ,April 700,May 400 and June 600 units. Technology used requires 6 hrs of labor to produce one unit. Jan, feB and mar have 20 workdays each month, April, May, June have 25 to produce iwatches. Even though overtime production is available limit is 200 max but manager prefers no overtime be used. Subcontracting is not available and back orders not permitted. Previous dec =150 iwatches stock. Regular time =$12 per hr , overtime =$18 per hour for work done beyond 8 hr working day , to hire =$40 to layoff $80 per worker . Inventory carrying cost =$8 per unit per month. If you assume that all transactions take place at the end of the month, and that there were 20 production workers employed in the prior December, what is the cost of the plan? 

Reference no: EM131133692

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