Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of $305$ days.

Setup labor cost: $$40\mathrm{.}00$ per hour

Annual holding cost

$$$$10$ per unit

Daily production$(8$ hours$)$

$800$units$/$day

Annual demand for steering wheels

$30,500(305$ days x daily demand of $100$units$)$

Desired lot size$(2$ hours of$$ production$)$

Q$=200$ units