Sanders Fishing Supply of Naples, Florida, manufactures avariety of fishing equipment, which it sells throughout the UnitedStates. For the next three months, Sanders estimates demand for aparticular product at 105, 190, and 185 units, respectively.Sunders can supply this demand by producing on regular time orovertime. Because of other commitments and anticipated costincreases in month 3, the production capacities in units and theproduction costs per unit are as follows:

Inventory
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