4.1 Quickturn Tool and Die produces a variety of custom xtures on a general purpose machine. Products are stored in a warehouse before shipment. The best selling product is three-jaw chucks, with a demand of 64,000 per year. Every time the machine is set up to produce three-jaw chucks, a cost of $1000 is incurred. Each three-jaw chuck costs $40. The warehouse has a capacity to store 100,000 three-jaw chucks and its operating cost is $50,000 per month. The warehouse is also used to store other products, so it is fully utilized throughout the entire year. Assume the interest rate is 5%. To minimize cost, how often should three-jaw chucks be produced and in what quantity?