2. Kosar Manufacturing has collected the following information on one of its major products. (Use a spreadsheet to model

(a) and

(b) below.)

Most efficient production rate ???? 2,100 units per period.

Production change costs ???? $15 per unit of change (from 2,100 units/period).

Inventory costs ???? $5 per unit per period (on closing inventory balance).

Backorder costs ???? $10 per unit to carry demand into next period.

Beginning inventory ???? 350 units.

Period Demand (Units)

I 3,000 II 2,250 III 2,000 IV 2,700

a. Using the preceding demand schedule, calculate a level production schedule that yields zero inventory at the end of period IV.

b. Calculate the total costs associated with the production schedule in part a.