Exercise 20-10 EOQ with Setup Costs Morrison Manufacturing produces casings for sewing machines: large and small. To produce the different casings, equipment must be set up. The setup cost per production run is $18,000 for either casing. The cost of carrying small casings in inventory is $6 per casing per year; the cost of large casings is $18 per unit per year. To satisfy demand, the company produces 2,400,000 small casings and 800,000 large casings. Required: 1. Compute the number of small casings that should be produced per setup to minimize total setup and carrying costs. 2. Compute the setup, carrying, and total costs associated with the economic order quantity for the small casings. 3. What data analytic type was used in Requirement 1 (descriptive, diagnostic, predictive, of prescriptive)? Justify your selection. See Exhibits 2.5 and 2.6,pp.37,40, for a brief review of data analytics. 4. Suppose that Morrison's production engineer indicates that he has a mechod to reduce scup time; consequently, he predicts the setup cost will be reduced to $180. What will be the EOQ if this method works as predicted? Now indicate what data analytic type is being used