Labor Cost for Set-Up Is $500/hour

Essay

Labor cost for set-up is $500/hour. If the plant plans on level material use and operates 50 days per year, determine the time it takes to setup.
$\begin{array}{|l|l|}\hline\text { Annual demand } & 5000 \\\hline \text { Daily production } & 1000 \\\hline \text { Lot size } & 700 \\\hline \text { Holding cost } & \$ 25 \\\hline\end{array}$