Minimum Cost Analysis Table
Month	FTE	FTEs Hired	FTEs Fired	BI Beginning Monthly Inventory	EI Ending Monthly Inventory	TCC Total Monthly Carrying Cost
1	39.385	0.00	5.85	5800	3400	$24,150.00
2	39.385	0.00	0.00	3400	0	$8,925.00
3	43.077	3.69	0.00	0	0	$0.00
4	44.615	1.54	0.00	0	0	$0.00
5	44.615	0.00	0.00	0	1000	$2,625.00
6	50.000	5.38	0.00	1000	1500	$6,562.50
7	50.000	0.00	0.00	1500	0	$3,937.50
8	47.692	0.00	2.31	0	0	$0.00
9	45.385	0.00	2.31	0	500	$1,312.50
10	45.385	0.00	0.00	500	0	$1,312.50
11	45.231	0.00	0.15	0	1400	$3,675.00
12	45.231	0.00	0.00	1400	5800	$18,900.00
	Sum=	10.62	10.62	Ave=	1133
	Cost=	$2,400.00	$2,100.00		$63.00
	Total=	$25,476.92	$22,292.31		$71,400.00

Begin with the minimum cost analysis presented at the meeting and limit the number of FTEs per month to the agreed upon maximum (44).

Allow monthly overtime production at time and a half but limit the monthly overtime production to 10% of the regular time production.

Constrain the ending monthly inventory to be greater than or equal to 10.

Question 7a. What is the total annual overtime direct labor cost?

(A) $155412 (B) $155520 (C) $2527200 (D) $2423520 (E) $2423592

Question 7b. What is the total annual carrying cost?

(A) $54600 (B) $81506 (C) $71400 (D) $80955 (E) $88460