Problem $13-7($Algo$)$

Trexoid Incorporated 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 $$230$ per unit and inventory carrying cost is $$2$ per unit per quarter. Overtime production cost is $$260$ per unit. Assume that the $15$ current Trexoid employees can produce a total of $30,000$ units per quarter in regular production and can work enough overtime hours to produce the amount required if a chase plan is employed. On the other hand, hiring cost is $$5,000$ per employee and firing cost is $$10,000$ per employee. Trexoid currently has zero inventory on hand, and it would like to have zero inventories at the end of the year. Assume that hiring and layoff$/$firing$,$ if necessary, occur at the beginning of the quarter. Forecast demand is as follows:

Quarter $122,000$unitsQuarter $220,000$unitsQuarter $340,000$unitsQuarter $4142,000$units

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

Determine the cost of the level production plan.

Given the planning information, develop a production plan based on chase production.

Determine the cost of the chase production plan. Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Given the planning information, develop a production plan based on chase production.

Note: Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Click here for the Excel Data File

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

b$.$ Determine the cost of the level production plan.

c$.$ Given the planning information, develop a production plan based on chase production.

d$.$ Determine the cost of the chase production plan.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $\backslash ($ A $\backslash )$

Required B

Required C

Required D

Determine the cost of the chase production plan.