ABC Manufacturing is evaluating alternatives for meeting aggregate demand, over the upcoming six quarters, for a product family. ABC has developed a production plan which is reported in the table below. Pertinent details are:

The production cost is $$40/$unit$.$

Inventory cost is $$6/$unit$/$quarter$.$

When demand cannot be entirely met from production and inventory in a quarter, units may be subcontracted at a cost of $$58/$unit$.$

Determine the ending inventory and the required levels of subcontracting for each quarter. Then answer the following questions.

Quarter Demand Production Ending Inventory Subcontract

Prior $60$

Q$1450370$

Q$2900870$

Q$3200140$

Q$4200340$

Q$5600720$

Q$6500480$

What is the total of the quarterly ending inventory levels for the year?

What is the total of the quarterly subcontracting levels for the year?

What is the total cost for the year?