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? Copyright by Glo Bus Software, Inc. Copying, distributing, or 3rd party websito posting nexpressly prohibited and constitutes copyright violation O Company managers expect to produce 50 models/styles and 3 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 50 models are $1 million. OA 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. O Company managers expect to produce 50 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 50 models of branded footwear are $1 million. Company managers expect to produce 300 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 300 models are $7.5 million. Company managers expect to produce 450 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 450 models of branded footwear are $12.75 million.