Apple is facing the aggregate planning problem shown in the table below. Cost of regular

production is $

$8$

$$per unit, the cost of producing the same unit on overtime is $

$15$

$,$

$$the cost of

subcontracting is $

$12$

$$per unit, and the cost of carrying a unit in inventory from one month to the

next is $$6.$The labor contract at the plant prohibits both overtime and subcontracting output to exceed $400$

units in any five$-$month window. The plant capacity is $20$ units per day produced using two shifts

and the plant runs seven days a week. By policy, management wants to avoid stockouts.

$$What is the optimal total cost of the aggregate plan developed to address this problem?

A

$)$

$$$

$27$

$,$

$200$

B

$)$

$$$

$20$

$,$

$960$

C

$)$

$$$

$31$

$,$

$400$

D

$)$

$$$

$26$

$,$

$600$