The annual forecast by quarters for a company's products is estimated as: 100000, 150000, 100000 and 150000 units for the four quarters respectively....

The annual forecast by quarters for a company’s products is estimated as: 100000, 150000, 100000 and 150000 units for the four quarters respectively.  

 Other relevant planning data are as follows:

Annual carrying cost of inventory = $0.50/unit

Beginning workforce = 30 workers

Capacity to produce for each worker per quarter = 1250 units

Cost of hiring a worker = $300

There is no cost of laying off a worker as these are part-time workers.

What is the production in the first quarter if a chase strategy is followed? 

a. 125,000 units 

b. 100,000 units 

c. 500,000 units 

d. 37,500 units