Sony corporation produces high definition television sets in its Los Angeles plant. The production manager has collected various costs on resources, and relevant estimated demand for their television sets and capacity available for production; which are then provided in the following two tables. Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Demand (units) Capacity (units) Regular time Overtime Subcontract Month 1 2,000 1,600 500 600 Period Month 2 2,500 1,500 400 600 $70 $110 $120 $4 Month 3 1,500 750 200 600 Month 4 2,200 1,700 400 600

Sony corporation produces high definition television sets in its Los Angeles plant. The production manager has collected various costs on resources, and relevant estimated demand for their television sets and capacity available for production; which are then provided in the following two tables. Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Demand (units) Capacity (units) Regular time Overtime Subcontract Month 1 2,000 1,600 500 600 Period Month 2 2,500 1,500 400 600 $70 $110 $120 $4 Month 3 1,500 750 200 600 Month 4 2,200 1,700 400 600

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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