Abc inc. is planning the production schedule for the next 8weeks. the forecasted demand...

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Accounting

Abc inc. is planning the production schedule for the next 8weeks. the forecasted demand for the next 8 weeks is 700, 800, 900,500, 1100, 1000, 800, and 900 respectively. abc can produce 800units per week in regular time and 200 more in overtime. theregular time production cost is $10.00 per unit which takes intoaccount $4.00 for materials, $1.00 for utilities, and $5.00 formanpower. the manpower cost for overtime is twice the regular rate.holding a unit in inventory costs $1 per unit per week. there isalso a cost for been late, at $2.00 per unit per week. the maximumlateness allowed is 2 weeks. it is the company's policy not to haveany item in inventory for more than 3 weeks. how much should abcproduce each week?

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There are two options for the company to produce To produce 800 units per week To produce as required number of units First option Produce 800 units per week Particulars Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Demand 700 800 900 500 1100 1000 800 900 Production 800 800 800 800 800 800 See Answer

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In: AccountingAbc inc. is planning the production schedule for the next 8weeks. the forecasted demand for...Abc inc. is planning the production schedule for the next 8weeks. the forecasted demand for the next 8 weeks is 700, 800, 900,500, 1100, 1000, 800, and 900 respectively. abc can produce 800units per week in regular time and 200 more in overtime. theregular time production cost is $10.00 per unit which takes intoaccount $4.00 for materials, $1.00 for utilities, and $5.00 formanpower. the manpower cost for overtime is twice the regular rate.holding a unit in inventory costs $1 per unit per week. there isalso a cost for been late, at $2.00 per unit per week. the maximumlateness allowed is 2 weeks. it is the company's policy not to haveany item in inventory for more than 3 weeks. how much should abcproduce each week?