PROBLEM SITUATION #$3$

Peter's Peripherals assembles multimedia upgrade kits $---$ sets of components for adding sound and video to desktop computers. The demand for their kits for the next four quarters is estimated in the table below. Unit manufacturing cost for each kit is $$160.$ Holding costs on each kit is $$80$ per quarter. Any kit that must be delivered late is assessed a backorder cost of $$120.$ Each worker is capable of finishing $10$ kits per quarter. If the company chooses to vary work force levels, it will incur costs of $$400$ for each additional worker; $$600$ for each termination. The company currently