Factory X Is Trying to Use Level Use Scheduling

Multiple Choice

Factory X is trying to use level use scheduling. If their first target were to cut the current lot size in half, by what proportion must setup cost change?

A) Setup cost must be cut to one fourth its current value.
B) Setup cost must also be cut in half from its current value.
C) Setup cost must double from its current value.
D) cannot be determined
E) none of the above