A manager would like to know the total cost of a chase strategy that matches the forecast
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A manager would like to know the total cost of a chase strategy that matches the forecast below using a steady regular production rate of 200 units a month, a maximum of 20 units per month of overtime, and subcontracting as needed to make up any shortages. The unit costs are:
Regular production $ 35
Overtime $ 70
Subcontracting $80
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