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The S8OP team at Kansas Furniture, led by David Angelow, has roceived estimates of demand requirements as shown in the table. Assuming one-time stockout costs

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The S8OP team at Kansas Furniture, led by David Angelow, has roceived estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory evaluate the following plan on an incremental cost basis: Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $65 per unit cut back. (Enter all responses as whole numbers.) Note: Both hining and layoff costs are incurred in the month of the change (1.e, going from production of 1,300 in July to foo0 in August requires a layoff (and related costs) of 300 units in August)

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