Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of

300

days.

Setup labor cost	$40.00 per hour
Annual holding cost	$16 per unit
Daily production (8 hours)	880 units/day
Annual demand for steering wheels	36,000 (300 daysdaily demand of 120 units)
Desired lot size (2 hours of production)	Q = 220 units

Part 2a) Setup cost =

$__________

(round your response to two decimal places).

Part 3b) Setup time =

____________ minutes (round your response to two decimal places).