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Use the following MoveFree, a manufacturer of electric wheelchair, is developing the aggregate plan for itsos t product, SpeedX10. The demand for the next four

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Use the following MoveFree, a manufacturer of electric wheelchair, is developing the aggregate plan for itsos t product, SpeedX10. The demand for the next four months and the costs relevant to the aggregne shown in the tables below. 022-028 Holding cost (S/unit.month) Stockout cost (S/unit.month) Cost and other data SS Current workforce (December) S40 Labor-hours/unit 80 Beginning inventory (units $15 SS0 Working days per month $100 10 Subcontract cost (Vunit) Hourly Labor cost (S/hr) Hiring cost (S/unit) Layoff cost (S/unit) 2 hours/unkt Working hours per day 25 velop the aggregate plan by hiring and layoffs as necessary. Capacity change cost from current month (Dec) to Jan should be included. a. De 1400 1100 Demand Production Subcontract Beginning inventory 1100 900 Balance Stockout Capacity + Capacity - Sub Cost Stockout Inventor Production Capacity+ Capacity- Subcontract 22) What is the total cost due to "capacity increase" in this plan? A) $50000 B) $45000 C) $30000 D) $55000 E) $40000

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