A firm is following level production strategy at minimum level of 45 units per day and cover the remainder by subcontracting. Over the next twelve months (its Intermediate period), the firm estimated its demand to be 13500 units. If the cost of subcontracting is 7815 per unit and the firm has 250 production days per year, what is the total cost of subcontracting $3750 $202500 $11500 $30000
