Quarter Demand $($units$)$

Spring $20,000$

Summer $25,000$

Fall $30,000$

Winter $25,000$

Each worker can produce an average $1,000$ baskets each quarter. Overtime is limited to $5,000$ cases$/$quarter and subcontracting is unlimited. No baskets are currently in inventory. The wage rate is $$24/$basket for regular production and $$36/$basket for overtime production. Subconracting costs $$45/$basket$.$ No stockouts are allowed. Hiring cost is $$2/$basket per quarter. $$ncreasing the workforce costs $$1,000/$worker; decreasing the workforces costs $$4,000/$worker$.$ Production in the prior period was $25,000$ units. Determine the total cost of using a level production strategy.

a$.$ $$2,430,000$

b$.$ $$2,410,000$

c$.$ $$2,685,000$

d$.$ $$2,420,000$