DOO Production improvement option B (with capital costs of $1.6 million per million pairs of production capacity and annual depreciation costs of 10%) that reduces production run setup costs by 50% each year makes the most economic sense in which one of the following circumstances? O A company's strategy is to pursue actions that will reduce production costs per pair produced at each of its production facilities to as low a level as possible--lowering production run setup costs helps achieve this strategic objective; therefore, installing option B should be done at each of the company's production facilities, irrespective of facility capacity and number of models to be produced. Company managers expect to produce 400 models/styles and 6 million pairs of branded footwear on an ongoing basis at a 6-million pair capacity facility in the Asia-Pacific--annual production run setup costs for 400 models of branded footwear are $10.75 million. Company managers expect to produce 350 models/styles and 4 million pairs of branded footwear on an ongoing basis at a new 4-million pair capacity facility in Latin America-- annual production run setup costs for 350 models of branded footwear are $9 million. Company managers expect to produce 250 models/styles and 3 milion pairs of branded footwear on an ongoing basis at a 3-million pair capacity facility in Europe-Africa--annual production run setup costs for 250 models are $6.0 million. Company managers expect to produce 400 models/styles and 3.6 million pairs of branded footwear on an ongoing basis at a 3-million pair capacity facility in Europe-Africa--annual production run setup costs for 400 models are $10.75 million. nnnnnn