A. Find Total cost, excluding normal time labor costs, for Plan A

The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Subcontract (Units) Month 1 July 2 August 3 September 4 October 5 November 6 December Ending Demand Production Inventory 1300 1,100 1150 1,100 1100 1,100 1600 1,100 1900 1,100 1900 1,100 oooo