8.

LMNO Gaskets has seeks an optimal production plan for a product to meet demand over the upcoming three quarters. Demand in each of the three quarters and production, overtime, and subcontracting capacities are reported in the table below. The relevant costs are:

Regular time production cost is $20/unit.

Overtime production cost is $30/unit.

Subcontracting cost is $34/unit.

Inventory is held at a cost of $5/unit/quarter.

Units may be backordered at a cost of $8/unit/quarter

Production Resource	Demand in Quarter			Capacity
	Q1	Q2	Q3
Regular Time Q1				600
Overtime Q1				300
Subcontract Q1				650
Regular Time Q2				600
Overtime Q2				300
Subcontract Q2				650
Regular Time Q3				600
Overtime Q3				300
Subcontract Q3				650
Demand in Quarter	1100	1900	670

What is the cost of the optimal production plan (Use EXCEL Solver)?