The demand for Bioway Inc. follows an up and down pattern. The quarterly demand is forecasted as below for this company:

Quarter	Demand forecast
1	70,000
2	100,000
3	50,000
4	150,000

The companys accounting department has done extensive research and found the following information: Beginning workforce = 40 workers

Production per employee = 1,250 units per quarter

Hiring cost = $595 per worker

Firing cost = $500 per worker

Inventory carrying cost = $1.7 per unit per quarter

Regular production cost = $10 per unit

The company also mandates a 40 hour work week with no overtime or subcontracting. At the end of each year, the company would like to zero out their inventory (i.e., have zero ending inventory).

Given the above information, what is the cost of Level strategy?

Answer:

What is the cost of Chase strategy?

Answer: