quiz 1. Please explain how to find the answers that are given(they are correect. Thank you

Aggregate demand for a product family is given in the table below for the upcoming four quarters. The table also reports the production level in the prior quarter. The production strategy is chase demand, in which the production in the quarter is exactly the demand:

The cost of increasing production from one quarter to the next is accounted for at $30/unit of increase

the cost of decreasing production from one quarter to the next is accounted for at $7.5/unit of decrease.

The per unit cost of production is $55/unit.

Quarter	Demand	Production	Production Increase	Production Decrease
Prior		550
Q1	400
Q2	180
Q3	160
Q4	780

What is the total of the quarterly increases in production for the year? 620 What is the total of the quarterly decreases in production? for the year? 390 What is the total cost for the year? 105125 (do not include the costs for the of the preceding year).