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 length of a production cycle in days?

A) 3.2
B) 4.1
C) 2.7
D) 5.3
E) 4.9