Textbook Chapter 13; problem 13.9 and 13.16 are the same in the 4th edition and the 3rd edition; problem 13.22 (WestJet) in the 3rd edition is problem 13.25 in the 4th edition. 13.9 For Burnaby Furniture: (a) Evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements). Plan A involves producing at a steady rate of 1000 units per month and subcontracting additional units at a premium cost of $60 per unit. This plan would require careful management of production and subcontracting to meet varying demand while minimizing costs. Plan B: Vary the workforce. Plan B involves varying the workforce to meet demand, with the current production level at 1300 units per month. The costs associated with this plan include hiring additional workers at $3000 per 100 units produced and layoffs at $6000 per 100 units cut back. This plan would require careful management of workforce levels to optimize production and minimize costs. (b) Which plan is best and why? Plan B is the best. Plan A total cost is equal to $168,000 while Plan B's total cost is equal to $54,000. Thus, Plan B is better than Plan A