The kirei-hana japanese steak house in san francisco consumes 36,000 pounds of sirloin steak each year. yama hirai, the new restaurant manager, recently completed an mba degree. he learned that the steak was replenished using an eoq value of 2,000 pounds. the eoq value was computed assuming an interest rate of 36 percent per year. assume that the current cost of the sirloin steak to the steak house is $4 per pound.
what is the setup cost used in determining the eoq value.