Q$3$: Information of a machine in a work center are as follows set up time is $3$ hours

cost of labor is $$50/$hour

Unit Cost is $$10$

Production Rate $50,000/$year

$$ Demand Rate $20,000/$year

Carrying Cost Rate $0\mathrm{.}3$

Answer the following:

a$)$ EPQ

b$)$ If the EPQ is $1000$ units, what is the targeted set up cost$?$

Based on EPQ of $1000$ units, compute total cost per year