Suppose now is the beginning of June, and there is going to be a changeover to the 1-L bottles tomorrow. The on-hand inventory of the 1-L bottles of vodka is only 144 cases, whereas the demand forecast of this item in June is 312 cases. Assume that the demand has no trend or seasonality. The setup cost per bottle run for vodka is $73.23. The cost per case of vodka is $29.31. The carrying cost rate is 15 percent of unit cost