The Tuna Colada A fishing consortium anticipates highly seasonal demand for their product, yellowtail tuna steaks that can be made into the new drink sensation, the tuna colada. Their estimate of the demand profile appears below. This forecast is based on the demand profile of last year's drink, the okra colada with one key difference. The tuna colada is being positioned as a healthier alternative to eggnog, so demand is expected to climb throughout the planning period with a peak in December.

Month	Demand Forecast
July	1,560
August	2,200
September	2,850
October	3,440
November	4,020
December	5,280

The costs for the managerial levers appear in this table.

Item	Cost
Materials cost/unit	$10
Inventory holding cost/unit/month	$4
Marginal cost of stockout/unit/month	$12
Hiring and training cost/worker	$200
Layoff cost/worker	$800
Labor hours required/unit	3
Regular time cost/hour	$16
Over time cost/hour	$24
Period beginning inventory equals	0
Period ending inventory equals	0
Marginal subcontracting cost/unit	$80

The base price per tuna colada is $75 and there is currently no promotion, hence, no forward buying, but management is seriously considering different promotional plans. The beginning workforce level is 80 employees. Use the Tuna Colada scenario to answer this question. What is the minimum value the cost of subcontracting must have to ensure that it is not used during the planning period?

		$104 per unit
		$107 per unit
		$110 per unit
		$101 per unit