Revolution Ltd. has entered into a contract to supply a component to a company which manufactures electronic equipments Expected demand for the component will be 70,000 units totally for all the periods Expected sales and production cost will be Period 9,500 30 17,000 30 18,500 32.50 4 25,000 35 Sales (units Variable cost per unit Total fixed overheads are expected to be 14 lakhs for all the periods The production manager has to decide about the production plan The choices are Plan1 Produce at a constant rate of 17,500 units per period. Inventory holding costs will be 6.50 per unit of average inventory per period Plan 2 Use a just-in-Time (JIT) system Maximum capacity per period normally... It can produce further up to 10,000 units per period in overtime Each unit produced in overtime would incur additional cost equal to 30% of the expected variable cost per unit of that period Assume zero opening inventory