The Austin, Texas plant of Computer Products produces disk drives for personal and small business computers. Gerald Knox, the plant$$s production planning director, is looking over next year$$s sales forecasts for these products and will be developing an aggregate capacity plan for the plant. The quarterly sales forecasts for the disk drives are as follows:

Ample machine capacity exists to produce the forecast. Each disk drive takes an average of $20$ labor$-$hours. In addition, you have collected the following information:

Inventory holding or carrying cost is $$100$ per disk drive per quarter. The holding cost is based on the inventory at the end of each quarter.

The plant works the same number of days in each quarter, $12$ five$-$day weeks, $6$ hours per day.

Beginning inventory is zero disk drives.

In a backlog situation, the customer will wait for his order to be filled but will expect a price reduction each quarter he waits. The backlog costs are $$300$ per floppy disk for the first quarter the customer waits, $$700$ for the second quarter the customer waits, and $$900$ for the third quarter the customer waits. In any quarter, if there is a backlog, this backlog will be filled before the demand for that period is filled.

The cost of hiring a worker is $$800$ while the cost of laying off a worker is $$950.$

The straight time labor rate is $$20$ per hour for the first quarter and increases to $$22$ per hour beginning in the second quarter.

Overtime work is paid at time and a half $(150\%)$ of the straight time work.

Outsourcing $($contract work$)$ is paid at the rate of $$475$ per disk unit for the labor and you provide the material

Demand is projected to increase this year. Demand during the fourth quarter of the prior year was $2,340$ units and this was met with a workforce that was fully employed with no under utilization and no overtime. The demand for the first quarter of the next year $($year following the year you are analyzing$)$ is projected to be at the $2,880$ unit level.

You want to maintain a work force capable of producing $2,610$ in a quarter. This work force is fully employed and there is no under utilization. If more units are produced in a quarter than are needed, they will be used to help meet demand in future periods. When demand in a quarter cannot be met from the units produced in that quarter or from units produced in previous quarters, the company will use outsourcing to meet the unfilled demand. What is the total cost of this