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A Repetitive Manufacturing Firm Is Planning on Level Material Use

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A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year.
 Annual demand 22,000 Daily demand 88 Daily production 250 Desired lot size (2 hours of production) 63 Holding cost per unit per year $50\begin{array} { | l | r | } \hline \text { Annual demand } & 22,000 \\\hline \text { Daily demand } & 88 \\\hline \text { Daily production } & 250 \\\hline \text { Desired lot size (2 hours of production) } & 63 \\\hline \text { Holding cost per unit per year } & \$ 50 \\\hline\end{array} a. What is the setup cost, based on the desired lot size?
b. What is the setup time, based on $40 per hour setup labor?


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