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Olives Company plans on using a constant production of 9,250 units a month at a $884 per unit cost. The company has an inventory balance
Olives Company plans on using a constant production of 9,250 units a month at a $884 per unit cost. The company has an inventory balance of 300 units at the beginning of January. Stockout cost due to loss sale is estimated to be $220 per unit. Monthly inventory holding cost are $16 per unit. ABC can produce an additional 10% of its regular production in overtime at the cost of $80 more per unit. Assume that Olives Company will avoid stockout if possible Under this plan how much will will Olives Company spend on inventory holding cost (answer to the nearest whole number)
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