A clothing manufacturer borrows $1.5M to purchase new machines The annual debt payment is $270,000. The machines can make 6 different types of shirts but the machines must be shut down for one day each time it switches production to another type of shirt. The manufacturer spends about 30 days per year due to changeovers The annual debt payment over those 30 days yields $9000 per day. How would the company use this cost, $9000, as an input to the EOQ model, to determine optimal production sizes for each type of shirt? No, the square root of $9000 should be input into the EOQ model as the setup cost. None of them is correct ○ Yes, $9000 is incurred per day independent of the subsequent production volume, so it is the setup cost in the EOQ Ipodel. ○ Yes, $9000 is incurred per day independent of the subsequent production volume, so it is the holding cost in the EOQ model.