A plant purchases components that are then combined into subassemblies. The subassemblies are produced in batches and stored until customers place orders. The subassemblies are then quickly combined into finished, customized products. For one particular subassembly, parts cost $50 and $12 is added during subassembly. Holding cost for the facility is 40% per year and annual demand for subassemblies is 14500. Each setup costs $125. Processing time is 1 hour per subassembly and batches spend approximately 2/3rd of total time waiting at machines or for material handling. Find the optimal batch size for making the subassemblies. Assume each month has 20, 8 hour working days. What will be the impact of reducing the setup costs by 50% on the EMQ, number of setups per time?