.. 13.9 Mary Rhodes, operations manager at Burnaby Furniture. has received the following estimates of demand require- ments: July 1000 Oct Aug 1200 Nov. Dec. Sept. 1400 1800 1800 1600 a) Assuming stockout costs for lost sales of $100 per unit, inven- tory carrying costs of $25 per unit per month, and zero begin- ning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum require ments) of 1000 units per month and subcontract additional units at a $60 per unit premium cost, Plan B: Vary the workforce which performs at a current production level of 1300 units per month. The cost of hiring additional workers is $3000 per 100 units produced. The cost of layoffs is $6000 per 100 units cut back. PX b) Which plan is best and why