Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. [20 points] Demand for Company LMN for the next 12 months is given in the following table: Month January February March April May

image text in transcribed

5. [20 points] Demand for Company LMN for the next 12 months is given in the following table: Month January February March April May June July August September October Demand Forecast 2,400 3,000 3,000 3,500 6,000 8,000 8,500 8,700 5,200 4,000 5,000 7,500 November December Company LMN employs 20 workers and has 2,000 units in inventory on January 1. In addition, the following information defines the operations at Company LMN for the next 12 months: a. Material costs/unit = $12 b. Inventory holding cost/unit/month = $5 c. Marginal cost of stockout/unit/month = $8 d. Hiring and training cost/worker = $500 e. Layoff cost/worker = $1,500 f. Labor hours required/unit = 1.25 g. Regular time cost/hour = $12 2 h. Overtime cost/hour = $18 i. Marginal subcontracting cost/unit = $35 j. Revenue/unit = $42 k. Days worked/worker/month = 20 1. Hour worked/worker/day = 8 m. Maximum overtime hours/worker/month = 10 n. End of year inventory required = 2,000 Provide an aggregate plan to maximize profit over the next 12 months, and report the maximum profit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

6th Canadian edition

978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883

More Books

Students also viewed these Accounting questions