1. General Food Stuffs packages a variety of breakfast cereals and snack bars, which it aggregates together as simply units of sale when doing medium-term planning. General Food Stuffs has created the following aggregate plan for the next six months:

	Month 1	Month 2	Month 3	Month 4	Month 5	Month 6
Forecast (units of sale)	30,000	40,000	50,000	20,000	10,000	5,000
Overall Production	30,000	40,000	40,000	30,000	5,000	5,000
Ending Inventory
Regular Time Production
Overtime Production

General Food Stuffs can produce up to 35,000 units of sale a month in Regular Time, when production costs are only $1.50 per unit of sale. When General Foods Stuffs plans to exceed 35,000 units of sale produced in a single month, all units of sale more than 35,000 must be produced in Overtime Production at a cost of $2.00 per unit of sale. General Food Stuffs has 10,000 units of sale available in inventory at the start of Month 1, and it will cost $0.50 to hold one unit of sale one month.

a. What is the ending inventory for Month 3 in this plan?

b. What is the average inventory for Month 5 in this plan?

c. Logically, what is the total amount that General Food Stuffs plans to produce in Overtime Production in this plan?

d. If General Food Stuffs calculates inventory holding costs based on average inventory levels, what is the total cost of this plan?

e. If General Food Stuffs calculates inventory holding costs based on ending inventory levels, what is the total cost of this plan?

Please answer the chart and a-e.