Union Machine Corporation operates a punch press that produces 20 units of product M each hour. The press is in operation five hours a day. In order to set up the press for product M, it is necessary to shut down for two hours. Setup time costs the company $15 per hour. The demand for product M is 40 units a day, during 250 operating days in a year. The inventory carrying cost, for each unit of product M, is $1 per year.