Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following demand forecast: Q1 1,800, Q2 1,100, Q3 1,600, Q4 900 COSTS/OTHER DATA Previous quarter's output = 1,300 cases Beginning inventory = 50 cases Back-Order cost = $150 per case Inventory holding cost = $40 per case at end of quarter Hiring employees = $40 per case Terminating employees = $80 per case Subcontracting cost = $60 per case Unit cost on regular time = $30 per case Overtime cost = $15 extra per case ($45) John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: a. Plan A: a strategy that hires and fires personnel as necessary to produce the current period's forecast. Include any costs due to the change in the production level from the previous output level. Total cost = $ $322,000 . What was the total inventory holding cost? $2,000 b. Plan B: a level strategy, producing an average demand rate. Include any costs due to the change in the production level from the previous output level. Cost = $ $308,500 back-order units? yes If so, how many units and what was the total back-ordering cost? 950 units; cost $142,500 Was there a need t c. Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecast demand with inventory and subcontracting (your subcontractor only has the capacity to fill a maximum of 300 units per quarter). Include any costs due to the change in the production level from the previous output level. Total Cost = $ 222,000 d. Which strategy is the lowest-cost plan? Plan C