A certain producer of projection units requires that a four-month aggregate plan be developed. Demand and capacity (in units) are forecast as follows:

Capacity                     1st Month       2nd Month       3rd Month       4th Month

Reg. Time Labor       235                255                290                300

Overtime Labor         20                  24                  26                  24

Subcontract               12                  15                  15                  17

Demand                     255                294                321                301

The cost of producing each projection unit is $985 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transportation method.