Please help with Excel file and show the formula. Thanks a lot!

ABC Company wishes to compare a Chase and Level strategy and reduce their current inventory of 5,000 units of finished goods in stock to 4,000 by the end of the first period. Use ending inventory to calculate carrying costs

Data

COGS $35.00

Beginning work force 65 employees Hiring cost $350 per employee

Work Hours per month 160 Firing cost $600 per worker

Carrying costs 32% per year Work Standard 2 hours per piece

Labor rate $24

A) Chase - What is the total cost of this plan for the 3 months?

Month	Forecast Sales	Production Plan	Inventory	Inventory Cost $	# of workers	Hire or Fire	H/F cost	Payroll	Total
July	5460
August	5340
Sept	5200

B) ABC Company wishes to investigate a Level strategy and reduce their current inventory of 10,000 units of finished goods in stock to 4,000 by the end of March.

Level

Month	Forecast Sales	Production Plan	Inventory	Inventory Cost $	# of workers	Hire or Fire	H/F cost	Payroll	Total
July	5460
August	5340
Sept	5200

Using the same data above, what is the total cost of this plan for the 3 months?

C) Which plan would you recommend and why? (3 marks)