Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information: Period 1 2 3 4 5 6 Total 200 300 400 500 200 1,800 = Forecast 200 Costs Output Regular time Overtime Subcontract Inventory Back orders $2 per skateboard $3 per skateboard = $6 per skateboard = $1 per skateboard per period on average inventory $5 per skateboard per period = They now want to evaluate a plan that calls for a steady rate of regular-time output, mainly using inventory to absorb the uneven demand but allowing some backlog. Overtime and subcontracting are not used because they want steady output. They intend to start with zero inventory on hand in the first period. Prepare an aggregate plan and determine its cost using the preceding information. Assume a level output rate of 300 units (skateboards) per period with regular time (i.e., 1,800/6=300). Note that the planned ending inventory is zero. There are 15 workers and each can produce 20 skateboards per period. After preparing the plan you conclude that the Backorder cost is $600 Regular labor cost is $3,600 Inventory cost is $600 Regular labor output in each period is 300 units Inventory cost is $450 0 O The total cost is $5,000