Problem 13-7 Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last quarter of the year. Regular production costs are $270 per unit and inventory carrying cost is $2 per unit per quarter. Overtime production cost is $300 per unit. Assume that the 20 current Trexoid employees can produce a total of 40,000 units per quarter in regular production and can work enough overtime hours to produce the amount required if a chase plan is employed. On the other hand, hiring cost is $7,000 per employee and firing cost is $12,000 per employee. Trexoid currently has zero inventory on hand, and they would like to have zero inventories at the end of the year. Assume hiring and layoff firing, if necessary, occur at the beginning of the quarter. Forecasted demand is as follows Quarter 1 Quarter 2 Quarter3 Quarter 4 28,000 units 20,000 units 58,000 units 166,000 units a. Given the above demand estimate, develop a production plan based on level production. (Leave no cells blank- be certain to enter "O" wherever required.) Level Production Plan Regular Production Ending Invento Number of Workers Quarter Demand Fire 28,000 20,000 58,000 166,000 272,000 2 This is a numeric cell, so please enter numbers only. 4 Total 0 0 0 0 b. Determine the cost of the level production plan. otal cost c. Given the planning information, develop a production plan based on chase production. (Leave no cells blank be certain to enter "O" wherever required.) Chase Production Plan-Overtime with Stable Workforce Regular Production ProductionInvent Overtime Ending Number of Workers QuarterDemand 28,000 20,000 58,000 166,000 272,000 Total 0 Chase Production Plan-Changing Workforce Levels Regular Production Ending Inven Number of Workers Quarter Demand Hire Fire 28,000 20,000 58,000 166,000 272,000 4 Total 0 0 d. Determine the cost of the chase production plan Total cost if overtime production used Total cost if workforce size adjusted