Question: Bryson Carpet Mills produces a variety of different carpets. Changing from production of one carpet to another involves a setup cost of $3, 500. Annual demand for this style is 195,000 yards. Bryson Carpet Mills produces carpet 300 days per year. The production process is most efficient when 8, 500 yards per day are produced at a cost of $4.50 per yard. Inventory carrying cost is estimated at 15 percent annually. What should be the production order quantity?