Assume that facility costs are $350,000 per year for a plant occupying 20,000 square feet. The cost per square foot is $17.50. A value stream occupying 10,000 square feet would be assigned a cost of $175,000. If the value-stream manager figures out how to do the same tasks with 5,000 square feet, the cost would be reduced to:

		$87,500.
		$77,000.
		$175,000.
		$200,500.