1. Please determine the following:
   1. What is the optimal production plan?
   2. What is the profit from this plan?
   3. What is the cost of the plan? Would you plan to increase or decrease your employee base? What impact might this decision have on your employee base?

Demand Forecast
Month	Demand Forecast
January	1,000
February	1,300
March	1,800
April	2,500
May	2,000
June	1,200

Costs
Item	Cost
Materials cost/unit	$400
Inventory holding cost/unit/month	$25
Marginal cost of stockout/unit/month	$50
Hiring and training cost/worker	$300
Layoff cost/worker	$500
Labor hours required/unit	4
Regular time cost/hour	$150
Over time cost/hour	$200
Marginal subcontracting cost/unit	$300

1. 
   
2.