Example $2$: Lambda Optics makes microscope lens housings. Annual demand is A $=100,000$ units per year. Assume that the product can be produced at the rate of B $=200,000$ units per year. Each production run costs K $=$ $$5,000$ to set up$,$ and the variable production cost of each item is c $=$ $$10.$ The annual cost per dollar value of holding items of inventory is h $=$ $$0\mathrm{.}20.$ Compute a$.$ Economic production quantity b$.$ The length of each production run c$.$ Cycle time d$.$ Total cost