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3) Daintee Limited, a specialist confectionary manufacturer, makes a variety of confectionary products candies in its manufacturing facility at Kandawala. Its line of confectionary products

3) Daintee Limited, a specialist confectionary manufacturer, makes a variety of confectionary products candies in its manufacturing facility at Kandawala. Its line of confectionary products exhibits a highly seasonal demand pattern. The firm's costs and quarterly sales forecasts are as follows: Costs: Hiring cost = $200 per worker, Firing cost = $600 per worker, Inventory carrying cost = $0.75 per pound per worker, Production per employee = 1000 pounds per quarter, Beginning workforce = 125 workers.

Quarter Sales Forecast (pounds)
Spring 80,000
Summer 50,000
Fall 100,000
Winter 150,000

Determine whether a level production or chase demand production strategy would more economically meet its demand for confectionery products.

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