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14) A manufacturer of industrial seafood processing equipment wants you to develop...

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Accounting

14) A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity. Back orders are not allowed. How much (if any) regular time capacity goes unused?
Quarter Units Regular Time Over- Sub- Regular time cost $1.25/unit
time contract
1 200 400 80 Overtime cost $1.50/unit
2 750 400 80 100 Subcontracting cost 2.00/unit
3 1200 800 160 100 Carrying cost $0.50/unit/quarter
4 450 400 80 100 Initial inventory 250 units

A. 0
B. 20
C. 40
D. 120
E. None of the above

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