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A factory with an annual production capacity of 145,000,000 boxes of cleaning cloths faces demand of 120,000,000 boxes of cleaning cloths a year. The boxes
A factory with an annual production capacity of 145,000,000 boxes of cleaning cloths faces demand of 120,000,000 boxes of cleaning cloths a year. The boxes cost $6 each. Setup cost is $3, and holding cost is 10 percent of purchase cost per unit on an annual basis. What is the optimal yearly setup cost? Round your final answer to the nearest integer.
A. $6103
B. $2491
C. $4315
D. $1762
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