BlueFans is a small company that manufactures fans. Large variations in demand due to seasonality have contributed to high costs for the company. BlueFans currently uses a level production strategy because it prefers not to hire and fire employees. However, if there is enough cost justification, the company will consider alternative production plans.

Input	Beg. Workers	22	Regular	40	Hiring	$2,500
	Units/Wkr	100	Overtime	$60	Firing	$3,000
	Beg. Inv	0	Subk	$75	Inventory	$7
Month	Demand	Reg	OT	Subk	Inv	#wkrs	#Hired	#fired
April	1300
May	1100
June	700
July	500
August	500
September	1000
October	1200
November	1200
December	5000
January	5600
February	7600
March	4300
Total	30,000

1. What is the cost of the current production plan? Justify your answer. (6 pts)

2. How much would BlueFans save (difference between the cost in a and the cost in b) by using a chase demand strategy? Justify your answer. (6 pts)

3. How much would BlueFans save (difference between the cost in a and the cost in c) by keeping a steady workforce of 20 workers and supplementing with over-time and subcontracting as needed. (6 pts)

This is all the information I have available on the problem. There's no additional details regarding overtime, only the rate.