=+ Without scheduling any overtime, lost sales due to stockouts would increase by 25000 units per year.

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=+◗ Without scheduling any overtime, lost sales due to stockouts would increase by 25000 units per year. However, by incurring overtime premiums of $35000 per year, the increase in lost sales could be reduced to 15000 units per year. This would be the maximum amount of overtime that would be feasible for Marjack.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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