A steel rolling mill can produce I-beams at the rate of 20 tons per week. Customer demand for the beams is 5 tons per week. To produce I-beams, the mill must go through a setup that requires changing to the appropriate rolling patterns. Each setup costs the mill $10,000 in labor and lost production. I-beams cost the mill $2,000 per ton and the mill has an annual holding cost of 25 percent. What is the optimal production batch size for I-beams? What is the annual setup cost of the optimal policy? What is the annual holding cost?