A company opting to boost its sales of branded footwear by offering buyers $500$ models$/$styles to choose from should attempt to offset the $$15$ million production run setup costs associated with producing $500$ models by of

instituting production improvement option $C$ at each production location where $500$ models$/$styles are going to be produced. closing its production facility in North America and consolidating all future production of $500$ models$/$styles of branded footwear at a single $12-$million pair facility in the Asia$-$Pacific $($so as to only incur the payment of $$15$ million in production run setup costs one time$)$; management should expect the production run setup cost savings will significantly outweigh the increased tariff costs associated with shipping more pairs to other regions of the world.

building production facilities in all four geographic regions and producing $500$ models$/$styles at each location$--$the resulting savings in tariff costs should more than cover the resulting $$60$ million in production run setup costs for $500$ models at the four production locations.

only producing $500$ models$/$styles at a single production location, probably North America where the sales gains from offering $500$ models will be the greatest, so as to incur the $$15$ million in production run setup costs only one time.

investing in production improvement option B at each production location where $500$ models are going to be produced.