1) Create a level plan with a zero ending inventory for the forecast shown in the table. There is no beginning inventory and regular production capacity is 300 units and costs $8 per unit. Subcontracting is limited to 60 units per month and costs $10 per unit. There is a cost of $5 per month to hold a unit in inventory. What is the total plan cost?

Hint: In a level production plan, production is held constant in every time period. Use regular production, subcontracting, and inventory to create the plan.

Month	Forecast	Regular	Subcontracting	Monthly Inventory Change	Ending Inventory
January	275
February	325
March	425
April	375