Use This Information to Answer the Following Questions

Multiple Choice

Use this information to answer the following questions.
A cake factory can produce cakes at the rate of 500 per day.The factory supplies its cakes to local grocery stores at a rate of 250 per day.The cost to prepare the equipment for producing the cakes is $20.Annual holding costs are $2 per cake.Assume that the factory operates 250 days a year.
-Refer to the information above.What is the optimal number of yearly setups?

A) 43.25
B) 37
C) 45
D) 47.94
E) 39.53