A small company produces a variety of recreational and leisure vehicles. The marketing manager has developed the following aggregate forecasts:

Use the following information:

Regular labour cost………………………$240 per unit

Overtime labour cost……………………..$360 per unit

Regular capacity.....40 units per month, using 5 workers

Overtime capacity…………………….8 units per month

Holding cost…………………….$30 per unit per month

Backorder cost…………………$100 per unit per month

Beginning inventory…………………………….0 units

Desired ending inventory……………………….0 units

Hiring cost………………………….$2,000 per worker

Layoff cost…………………………$1,000 per worker

Develop the minimum cost aggregate production plan and compute its total cost.

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Month Mar Apr May Jun Jul Forecast 50 44 Aug Sep Total 55 60 60 40 50 59