A furniture manufacturing company wants to determine lot sizes for coffee table production. The daily production of the company is 2000 coffee tables. Studies show that the annual demand for coffee tables is 200 000 pieces. It is known that the unit cost of the production of the coffee table for the company is 25$ and the rate of keeping in stock is 30% per year. Machine settings, tool changes, etc. to be made between the production of each batch. It has been determined that the cost of such activities to the company is $500. Since the company works 250 working days a year;

a) What should be the size of each lot?

b) What is the annual cost of the lot size you have determined for the company?