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Flag question: Question 10 Question 101 pts Mary Rhodes, operations manager at Northeast Furniture, received the following demand forecast: Jan: 1,000; Feb. 1,200; March 1,400; April 1,800; May 1,800; June 1,600 Assume stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month and zero beginning and ending inventory. Evaluate the following two plans on an incremental cost basis: Alternative 1: Produce at a steady rate, equal to minimum requirements, of 1,000 units per month. Subcontract enough additional units, at $60 per unit premium cost, to avoid lost sales. What is the cost of alternative 1

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