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Al Futain manufacturing company manufactures luxury beds for the UAE market. The Company has developed monthly forecasts for a family of products. Data for the

Al Futain manufacturing company manufactures luxury beds for the UAE market. The Company has developed monthly forecasts for a family of products. Data for the 6-month period from January to June and cost information are presented in tables 1and 2 below. . Use Plan 2 - by using subcontractors with a constant workforce at the lowest demand per day and calculate the Total Cost of the Plan.

Table 1

MONTH

PRODUCTION DAYS

DEMAND FORECAST

DEMAND PER DAY

Jan

22

1,065

Feb

18

925

Mar

21

1,002

Apr

24

1,000

May

24

1,264

June

22

1,303

Table 2

Cost Information

Subcontracting cost per unit

30

$ per unit

Average pay rate

14

$ per hour (10 Working hours per day)

Labor hours to produce a unit

1.6

hours per unit

Note: Please write your final answer in the whole number without decimal points.

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