Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for…
Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a normal capacity of 275(00) bolts per month, except for the seventh month, when capacity will be 250(00) bolts. Normal output has a cost of $33 per hundred bolts. Workers can be assigned to other jobs if production is less than normal. The beginning inventory is zero bolts.
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