WalkingPad is developing an aggregate plan for its folding treadmills. The company has collected the following key inputs in Table 1. Table 1 Parameter Hiring Cost per unit Layoff Cost per unit Cost of holding inventory per unit per month Cost of a backorder per unit per month Production Cost per unit Starting inventory in units Previous Month's Production (Month 0) in units Value $34 $84 $30 $51 $151 0 838 Demand forecasts for the 5 months of the planning horizon are in Table 2. Table 2 Month 1 2 3 4 5 Demand 1,277 2,476 3,239 2,687 2,240 Compare a chase strategy using hires and layoffs to a level strategy using inventory and backorders. 1. Calculate the total cost over the planning horizon for the chase strategy using hires and layoffs. 2. Calculate the total cost over the planning horizon for a level strategy that uses inventory and backorders and sets production equal to the average demand. Round up to the nearest whole unit when deriving the production value to use in each period. Which plan has the lowest total horizon cost? Enter the absolute difference between the total horizon costs of the two plans. Carry all calculations to 3 decimal places. Enter your final answer rounded to the nearest dollar.