5. Consider the following information for the Fairmount Company:

Production change cost ???? $20/unit of change (from a base of 4,000 units).

Most efficient production rate ???? 4,000 units per period.

Maximum amount of production capacity ???? 4,600 units per period.

Inventory costs ???? $4/unit per period on the ending inventory.

Shortage costs ???? $15/unit per period.

Subcontracting costs ???? $18/unit (maximum of 1,000 units per period).

Beginning inventory ???? 1,200 units.

Period Demand (Units)

1 6,000 2 4,500 3 6,000 4 5,100