The production planner of a company forecasts the sales over the next six months as 180, 220, 210, 190, 170, and 210 units, respectively. The beginning inventory is 100 units and the last monthly production level was 130 units. The unit costs are given as follows: Inventory holding cost is 90 TL per unit per month; production cost is 1150 TL per unit; production level increasing cost is 300 TL per unit; and production level decreasing cost is 400 TL per unit. The planner decides to use level strategy, where the monthly production level is determined equal to the average of net demand. What is the total cost (in TL) of the resulting plan? O a. 1,246,350 Ob. 1,347,450 Oc. 1,412,850 O d. 1,391,100 O e. 1,278,600

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter7: Budgeting
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Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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The production planner of a company forecasts the sales over the next six months as 180, 220 , 210, 190, 170, and 210 units, respectively. The beginning inventory is 100 units and
the last monthly production level was 130 units. The unit costs are given as follows: Inventory holding cost is 90 TL per unit per month; production cost is 1150 TL per unit;
production level increasing cost is 300 TL per unit; and production level decreasing cost is 400 TL per unit. The planner decides to use level strategy, where the monthly production
level is determined equal to the average of net demand. What is the total cost (in TL) of the resulting plan?
O a 1,246,350
O b. 1,347,450
O c. 1,412,850
O d. 1,391,100
O e. 1,278,600
Transcribed Image Text:The production planner of a company forecasts the sales over the next six months as 180, 220 , 210, 190, 170, and 210 units, respectively. The beginning inventory is 100 units and the last monthly production level was 130 units. The unit costs are given as follows: Inventory holding cost is 90 TL per unit per month; production cost is 1150 TL per unit; production level increasing cost is 300 TL per unit; and production level decreasing cost is 400 TL per unit. The planner decides to use level strategy, where the monthly production level is determined equal to the average of net demand. What is the total cost (in TL) of the resulting plan? O a 1,246,350 O b. 1,347,450 O c. 1,412,850 O d. 1,391,100 O e. 1,278,600
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