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Question 2 (25 points) ATA Manufacturing Company produces transmission parts and sells to different Auto Repair shops 6000 units per year. ATA can produce these transmission parts at a rate of 75 units/hour. Machine setup time to produce these parts is 3 hours. Labor for this work is estimated at a rate of $60/hour, and manufacturing plant idle time during setups is estimated to cost the firm around $200 per hour in lost profit. ATA uses a 20% annual interest rate for holding cost estimation. Each transmission part costs ATA $25 to produce; they are sold for $50 each to auto repair shops. ATA works one shift of ten-hours per day Monday through Saturday. a) (7 points) What is the optimal production quantity for this transmission part that minimizes inventory related costs? b) (6 points) What is the maximum expected level of on-hand inventory for these transmission parts? c) (6 points) What is the uptime and down time during each production eyele? d) (6 points) What is the total annual expected cost for the optimal production policy? What is the expected annual profit? Question 2 (25 points) ATA Manufacturing Company produces transmission parts and sells to different Auto Repair shops 6000 units per year. ATA can produce these transmission parts at a rate of 75 units/hour. Machine setup time to produce these parts is 3 hours. Labor for this work is estimated at a rate of $60/hour, and manufacturing plant idle time during setups is estimated to cost the firm around $200 per hour in lost profit. ATA uses a 20% annual interest rate for holding cost estimation. Each transmission part costs ATA $25 to produce; they are sold for $50 each to auto repair shops. ATA works one shift of ten-hours per day Monday through Saturday. a) (7 points) What is the optimal production quantity for this transmission part that minimizes inventory related costs? b) (6 points) What is the maximum expected level of on-hand inventory for these transmission parts? c) (6 points) What is the uptime and down time during each production eyele? d) (6 points) What is the total annual expected cost for the optimal production policy? What is the expected annual profit