Answer:
The resulting total cost would be $12,450 per month.
Explanation:
a) Data and Calculations:
Steady regular output = 550 units per month
Overtime limit = 40 units per month
Subcontract limit = 10 units
Therefore, total output = Regular output + Overtime limit + Subcontract limit
= 550 + 40 + 10 units
= 600 units
The total cost:
Regular output, 550 * $20 = $11,000
Overtime limit, 40 * $30 = 1,200
Subcontract limit, 10 * $25 = 250
Total cost = $12,450
