A factory manager is preparing his aggregate plan for the next three months. The demand is given in the table below:

Month	Expected Demand	Available Days	Production
Month 1	145	25	10
Month 2	242	25	10
Month 3	363	25	10

He decided to adopt a level strategy, and planned to manufacture a constant number of 10 products everyday.

The cost information is given in the table below:

Inventory Carrying Cost	H dollars per unit per month
Average Pay Rate	$12 per hour ($96 per day)
Labor-hours to produce a unit	T hours per unit

Calculate the total cost of this plan, as given in the table below. Show your work.

	Cost	Calculation
Inventory Carrying		Hint: Calculate the total amount of inventory first!)
Regular-time labor		Hint: If it takes T hours to make one product, how many workers do we need to make 10products a day?)

H and T values are in the table below:

H (in dollars) = 1

T (in hours) = 1.5

Assume the company starts the first monthwith zero inventory at hand!