*You are developing an aggregate plan for a toolbox maker which sells to professional mechanics. The relevant cost and demand data are shown below:

Holding cost	$8/toolbox/month		Month	Demand
Subcontract	$80/toolbox		July	400
Regular time	$45/toolbox		August	500
OT	Regular time cost plus additional $20 per toolbox		September	500
Capacity increase	$50/unit		October	700
Capacity decrease	$90/unit		November	800
Backlog cost	$10/toolbox/month		December	700
June capacity and demand	500 toolboxes
Beginning inventory	0 toolboxes

Plan A: Try a level strategy where the company produces to the average demand (of July-December) by allowing capacity increases (hiring) and decreases(firing) to occur.

What is the total cost of this plan? [ Select ] ["$162,000", "$177,400", "$140,400", "$171,600"]

What is the total holding (inventory) cost for this plan? [ Select ] ["$1,300", "$10,400", "$0", "$15,400"]

Plan B: In this plan, the toolbox maker would to the minimum demand of the 6 month planning period, then use subcontracting each month to meet that month's demand, ensuring that there is no backlog.

What is the total cost of this plan? [ Select ] ["$244,000", "$184,840", "$192,920", "$213,000"]

What is the total holding (inventory) cost for this plan? [ Select ] ["$500", "$4,000", "$0", "$29,000"]

Which plan should the toolbox maker choose? [ Select ] ["A", "B"]