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Develop a level material use schedule. Calculate the setup cost. Question 22: A firm wants to develop a level material use schedule based on the

Develop a level material use schedule. Calculate the setup cost.
Question 22: A firm wants to develop a level material use schedule based on the following data. What should be the setup cost?

a) $0.45
b) $4.50
c) $45
d) $450
e) $500

The provided data is:

Desired lot size: 60
Annual demand: 40,000
Holding cost: $20 per unit per year
Daily production rate: 320
Work days per year: 250

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