Table 11.12
Tanfastic,Inc. ,a manufacturer of swimwear,is in the process of developing a production plan for the coming spring break.The ending inventory for January is 30 units.Undertime is paid,at a rate of $5.00 per unit.Details are shown in the following POM for Windows table.
-Use the information in Table 11.12.Given the information in the optimal tableau,what is the overtime cost in dollars per unit?

Question

Table 11.12
Tanfastic,Inc. ,a manufacturer of swimwear,is in the process of developing a production plan for the coming spring break.The ending inventory for January is 30 units.Undertime is paid,at a rate of $5.00 per unit.Details are shown in the following POM for Windows table.   
-Use the information in Table 11.12.Given the information in the optimal tableau,what is the overtime cost in dollars per unit?

Quizplus · Accepted Answer

To calculate the overtime cost per unit, we need to look at the coefficients of the slack variables in the optimal tableau. From the tableau in Table 11.12, we can see that the coefficient for the slack variable associated with the overtime constraint is 16. This means that for each unit produced in overtime, the cost is $16. Therefore, the answer is C, greater than $14 but less than or equal to $16.

As for the best choice(s), we need more information about the problem statement to determine the optimal solution. The table only provides information about ending inventory and overtime costs, but we need additional information such as demand, production capacity, and regular time production costs to make a decision.

Table 11.12 Tanfastic,Inc. ,A Manufacturer of Swimwear,is in the Process of Developing