Cost to set up the design

Kellam Images prints snack food bags on long rolls of plastic film. The plant operates 250 days a year. The daily production capacity is 6000 bags, and the daily demand is 3500 bags sold at $2 each. The cost to set up the design for printing is $300. The holding cost is estimated at 1% of the price of a bag per day. To get accurate final answers, do not round your intermediate results to less than 2 decimal places.