The answer is not E so what would it be?

Production improvement option B (with capital costs of $1.6 million per million pairs of production capacity and annual dopreciation 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? Company managers expect to produce 200 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 200 models are $4.5 million Company managers expect to produce 100 models/styles and 6 million pairs of branded footwear on an ongoing basis at a 6-million par capacity facility in the Asia-Pacific-annual production run setup costs for 100 models of branded footwear are $2 million Company managers expect to produce 400 models/styles and 3.6 million pairs of branded footwear on an ongoing basis at a 3-million palt capacity faciity in Europe-Africa--annual production run setup costs for 400 models are $10.75 million Company managers expect to produce 350 models/styles and 4 million pairs of branded footwear on an ongoing basis at a new 4 million par capacity facility in Latin America- annual production run setup costs for 350 models of branded footwear are $9 million O company's strategy is to pursue actions that will reduco production costs per pair produced at each of its production facilities to as low a level as possible--lowering production run sotup costs helps achieve this strategic objective therefore, Installing option B should be done at each of the company's production facties, irrespective of facility capacity and number of models to be produced