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ABX manufactures large freezers for grocery stores. ABX is presently trying to plan its production and inventory levels for the next six months. Because
ABX manufactures large freezers for grocery stores. ABX is presently trying to plan its production and inventory levels for the next six months. Because of seasonal fluctuations in utility and raw materials costs, the per unit cost of producing freezers varies from month to month-as does the demand for the products. Production capacity also varies from month to month due to differences in the number of working days, vacations, and scheduled maintenance and training. The following table summarizes the monthly production costs, demands, and production capacity that ABX's management expects to face over the next 6 months. Month 1 2 3 4 5 6 Unit Production $225 $250 $230 $275 $290 $260 Cost
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