Foltek produces solid state relays that is used in alternating current power system. The firm works two hundred and forty days in a year, and uses forty eight thousand armatures (used in solid state relays) per year. The firm makes its own amatures and produces them at a rate of eight hundred per day. The solid relays are assembled uniformly over the entire year. The carry cost is one dollar per amature a year, and the setup cost for a production run of amatures is forty five dollars. The minimum total annual cost for carrying and setup is