a. Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum of 40 units a month, and subcontracting is limited to a maximum of 10 units a month? Unit costs are:

Regular output $ 20

Overtime $ 30

Subcontract $ 25

Average Inventory $ 10

Backlog $ 18

b. Suppose now that backlogs are not allowed. Modify your plan from part a to accommodate that new condition as economically as possible. The limits on overtime and subcontracting remain the same.

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Month Forecast 540 540 570 590 600 580