A company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase strategy would be better. They have the following information available regarding their production operation Hiring Cost (per unit increase) $40 Firing (per unit decrease) $80 Inventory Cost (per unit) $40 $150 Stockout (per unit) Production (Labor) cost (per unit) Subcontracting cost (per unit) $30 $60 Previous quarter's production 1300 Previous quarter's ending inventory 0 Quarter forecasts are 4000, 2000, 4000 and 5000, respectively. Suppose that you want to use a chase plan. What is firing cost of quarter 2? (Do not round your intermediate calculations. Round your final answer to the nearest whole number.)

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.