A firm completes its near level production, five-month demand plan for the next business planning...

A firm completes its near level production, five-month demand plan for the next business planning cycle:

Month 1Month 2Month 3Month 4Month 5

Demand Forecast15,00020,00025,00025,00018,000

Production Plan (Regular Time)20,00020,00020,00020,00018,000

Production Plan (Overtime)5,000

Ending Inventory5,0005,000

Average Inventory2,5005,0002,500

Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5

Hires7

Layoffs2

Actual Workforce Size132020202018

Regular Time Hours Required2,0002,0002,0002,0001,800

Overtime Hours Required500

Costs

Regular time cost per unit$15

Overtime cost per unitS25

Monthly inventory cost per unit$1

Cost of hire$1,500

Cost of layoffS400

What is the cost of this demand plan?