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15. Knitting Needles produces several designs of sweaters for sale in specialty stores. The production rate for a style of sweater is 20 units per day (250 workdays per year). The sales rate for this sweater is 6 units per day. The setup cost for the knitting machine used to make the sweater is $62, and the cost to hold a sweater for a year is $12. a. Determine the economic production lot. b. What would the maximum inventory be if Knitting Needles wants to have 10 sweaters on hand (i.e., safety stock) when the first sweaters in a new production run begin to be completed? non 12. Durango Castings has a long-term contract to deliver 1,450 pump housings per week, 52 weeks of the year. The company has a high-capacity machine that can produce these castings at a rate of 4,500 units per week. It costs $250 to set up this machine, and each unit produced by this method costs $21.50. The holding cost is 24 percent per year. a. Determine the EPL. b. Determine the total annual setup and holding costs if the company operates with this EPL.