The Sales & Operations Planning (S&OP) team at Kansas Furniture has received estimated demand requirements, which are detailed in the table below. Using the given parameters—such as a one-time stockout cost of $125 per lost unit, an inventory carrying cost of $30 per unit per month, and zero beginning and ending inventory—the team will evaluate two potential plans using an incremental cost method:**Plan A:** This plan involves producing at a constant rate (equal to the minimum requirement) of 1,100 units per month. Additional units required are to be subcontracted at a premium cost of $70 per unit, with a subcontracting capacity capped at 800 units per month.Here’s the demand table for Plan A:| Month | Demand | Production | Ending Inventory | Subcontract (Units) ||------------|--------|------------|------------------|---------------------|| July | 1300 | 1100 | 0 | 200 || August | 1150 | 1100 | 0 | 50 || September | 1100 | 1100 | 0 | 0 || October | 1600 | 1100 | 0 | 500 || November | 1900 | 1100 | 0 | 800 || December | 1900 | 1100 | 0 | 800 |**The total cost, excluding normal time labor costs, for Plan A is $____.** (The response should be a whole number.)This approach ensures that demand is met each month through a mix of constant production and subcontracting, keeping the ending inventory at zero. **Plan B: Workforce Adjustment Strategy**In this plan, the workforce is adjusted to meet the production levels of the previous month's demand. The company initially produced 1,300 units in June. Costs associated with workforce adjustments include hiring additional workers at $30 per unit produced and layoffs costing $60 per unit reduced. Both hiring and layoff costs occur in the month when changes in production are necessary. For example, a reduction in production from 1,300 units in July to 1,150 units in August requires layoffs and incurs costs.**Monthly Table:**| Month | Demand | Production | Hire (Units) | Layoff (Units) | Ending Inventory | Stockouts (Units) ||-----------|--------|------------|--------------|----------------|------------------|-------------------|| July | 1300 | | | | | || August | 1150 | | | | | || September | 1100 | | | | | || October | 1600 | | | | | || November | 1900 | | | | | || December | 1900 | | | | | |**Cost Analysis:**- **Total Hiring Cost**: $ ___ (Enter your response as a whole number.)- **Total Layoff Cost**: $ ___ (Enter your response as a whole number.)- **Total Inventory Carrying Cost**: $ ___ (Enter your response as a whole number.)- **Total Stockout Cost**: $ ___ (Enter your response as a whole number.)- **Total Cost, excluding normal time labor costs, for Plan B**: $ ___ (Enter your response as a whole number.)This structure aids in decision-making by demonstrating the financial implications of production and workforce changes required to meet demand dynamics effectively.

Plan A is the steady production rate plan, in which the production is set to a specific quantity, the excess units are produced through subcontracting. For instance, For the month of July, the demand is 1300 and the production is 1100 units. In this case, 200 units need to be produced through subcontracting.Month Demand Production Ending Inventory Subcontract (Units) July 1300 1100 0 200 August 1150 1100 0 50 September 1100 1100 0 0 October 1600 1100 0 500 November 1900 1100 0 800 December 1900 1100 0 800 The cost of plan A is the cost of subcontracting as normal time labor cost needs to be excluded. Month Demand Production Ending Inventory Subcontract (Units) Cost July 1300 1100 0 200 200*70=14000 August 1150 1100 0 50 50*70=3500 September 1100 1100 0 0 0 October 1600 1100 0 500 500*70=35000 November 1900 1100 0 800 800*70=56000 December 1900 1100 0 800 800*70=56000 Total cost = 14000+3500+0+35000+56000+56000=$164,500Plan B Month Demand Production Hire Layoff Ending inventory Stockouts July 1300 1300 0 0 0 0 August 1150 1300 0 150 1300-1150=150 0 September 1100 1150 0 50 150+50=200 0 October 1600 1100 500 0 1600-1100=500 Inventory used 0 500-200(inventory)=300 November 1900 1600 300 0 0 1900-1600=300 December 1900 1900 0 0 0 0 Month Demand Production Hire Layoff Ending inventory Stockouts July 1300 1300 0 0 0 0 August 1150 1300 0 150 150 0 September 1100 1150 0 50 200 0 October 1600 1100 500 0 0 300 November 1900 1600 300 0 0 300 December 1900 1900 0 0 0 0 Total 800 200 350 600 Hiring cost 800*30=24000 Layoff cost 200*60=12000 Inventory carrying cost 350*30=10500 Stockout cost 600*125=75000 Total cost for plan B 121500