Given the above demand estimate, develop a production plan based on level production.

Problem 13-7 Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last quarter of the year. Regular production costs are $120 per unit and inventory carrying cost is $5 per unit per quarter. Overtime production cost is $150 per unit. Assume that the 10 current Trexoid employees can produce a total of 50,000 units per quarter in regular production and can work enough overtime hours to produce the amount required if a chase plan is employed. On the other hand, hiring cost is $5,000 per employee and firing cost is $10,000 per employee. Trexold currently has zero inventory on hand, and they would like to have zero inventories at the end of the year. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Forecasted demand is as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 30,000 units 20,000 units 70,000 units 120,000 units a. Given the above demand estimate, develop a production plan based on level production. (Leave no cells blank - be certain to enter "0" wherever required.) Level Production Plan Quarter Demand Regular Production Ending Inventory Number of Workers Hire Fire 1 30.000 2 20,000 3 4. 70,000 120,000 240,000 Total b. Determine the cost of the level production plan. Total cost