Setup labor cost

Annual holding cost

Daily production $(8$ hours$)$

Annual demand for steering wheels

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

$$60\mathrm{.}00$ per hour

$$16$ per unit

$800$ units$/$day

$30,975(295$ days $$ daily demand of $105$ units$)$

$Q=200$ units

a$)$ Setup cost $=$$$,($round your response to two decimal places$).$