decision making and cost allocation Retum to problem 11. Now suppose indireet labor is also required, in the ratio of .5 dollars of indirect labor to every dollar of direet labor. Further assume the direct labor eosts, as induded in the original TMC speeification, are 9, 12 and 15 dollars per unit respectively. Fonnulate and solve an LP to determine the optimal production schedule. Your LP should use three decision variabIes, ql'

Carefully identify and rationalize your use of eost alloeation in this analysis.

AppendixLO1