An electronics firm has a contract to deliver the following number of radios during the next three months; month 1, 200 radios; month 2, 300 radios; month 3, 300 radios. For each radio produced during months 1 and 2, a $10 variable cost is incurred; for each radio produced during month 3, a $12 variable cost is incurred. The inventory cost is $1.50 for each radio in stock at the end of a month. The cost of setting up for production during a month is $250.