Currently the Firm Is Using a Pure Level Strategy

Multiple Choice

Currently the firm is using a pure level strategy.It has 60 workers who produce 1200 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.Of the following descriptions of the situation, what is true? The quarterly demand information is provided below.
Q1:120,000 units, Q2:100,000 units, Q3:80,000 units, Q4:92,000 units

A) Throughout the year, no back orders occur
B) During the first quarter, 22,000 units were back ordered
C) A backorder occurred only during 1 quarter
D) A backorder occurred only during 3 quarter