a) The total subcontracting cost= $ ...

b) The total inventory carrying cost= $ ...

c) The total cost, excluding normal time labor costs, is = $ ...

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March April 1,200 1,500 1,600 May June July August 2,100 2,100 1,900 1,400 1,800 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,200 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 900 units per month. Evaluate this plan by computing the costs for January through August. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). Demand Ending Inventory 200 Subcontract Units Production Period Month 0 December January 2 February 3 March 4 April 5 May 6 June 7 July August 1,200 1,500 1,600 1,800 2,100 2,100 1,900 1,400 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 8