Consider the estimated aggregate demand for a company’s ski product line for the upcoming year in the following table. Calculate the regular time production cost for January using the level production strategy. Assume the regular time production cost as $200/pair of skis, the average monthly inventory holding cost is $20/pair of skis per month, and the beginning inventory for January is 8,000 units.
A. $400,000
B. $800,000
C. $120,000
D. $100,000
B. $800,000
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