The total cost, excluding normal time labor costs, for Plan A = $_____

The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a 565 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers) Subcontract (Units) Month July 2 August 3 September 4 October 5 November 6 December Ending Demand Production Inventory 1200 1,200 0 1300 1,200 0 1200 1,200 0 1700 1,200 0 1650 1,200 0 1400 1,200 0