Acme Company's demand over the planning horizon is expected to be as follows:

Month	1	2	3	4	5
Demand	7500	7600	8500	7700	7800

Regular production cost is $5 per unit. Regular production capacity is 7500 units, beyond which, the company must subcontract, at a cost of $8 per unit. Carrying cost is $3.00 per unit per period (based on ending inventory each period, not average inventory) and there is a shortage cost of $4.00 per unit per period.

a) Using a level production strategy, what is the total planning costs (rounded to nearest dollar) over the 5 periods? Finish the planning period with zero ending inventory. dollars

b) Using a chase strategy, what is the total planning costs (rounded to nearest dollar) over the 5 periods? Finish the planning period with zero ending inventory. dollars

c) Which strategy is the better plan? Enter Level or Chase

d) If you employ the best strategy from part c (above), how much will ACME save? dollars