Question: A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter was

A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter was 0. The extra units produced are stored in a warehouse. The extra units needed are subcontracted. Demand over the next four quarters is estimated to be 889,992,855, and 1,036. Production cost is $25 per unit, and Inventory cost is $6 per unit. How much is the cost of carrying the inventory accumulated during the first period?

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