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Please refer to page 40, example 1 also the answer to example.
Can someone tell me how do i get the bold numbers?
Demand: 400 500 700 900
300 2900 3400 4400 5400
500 3500 4000 5000 5000
700 4100 4600 4600 4600
800 4400 4400 4400 4400Thank You very much
Normal SP $11 Contract price $9
Unit cost $6 Unit cost $6
Cont/ unit $5 Cont / unit $3
1st column: 300u/400u (400u x $5) + (300u x $3) =$2900
500u/400u (400u x $5) + (500u x $3) =$3500You continue like this to the end and then you move to the next column i.e. 300u/500u and then it’s pretty much the same as above.
Hope this helps!
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