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Business, 22.04.2020 00:54 codycollier

General Food Stuffs packages a variety of breakfast cereals and snack bars, which it aggregates as simply units of sale when doing medium-term planning. General Food Stuffs has created the following aggregate plan for the next 3 months: Month 1 Month 2 Month 3 Beginning Inventory 5,000 Forecast (units of sale) 28,000 29,000 30,000 Overall Production 30,000 30,000 30,000 Ending Inventory Regular Production ($2/unit) Overtime Production ($3/unit) General Food Stuffs can produce up to 20,000 units of sale a month in regular time, when production costs are only $2 per unit of sale. When General Food Stuffs has to exceed 20,000 units of sale in a single month, all units of sale in excess of 20,000 must be produced in overtime production at a cost of $3 per unit of sale. What is the cost of overtime production for Month 3?

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