Figure 24-3 Cozy Stoves Produces Wood-Burning Stoves. in Order to Produce the Produce

Multiple Choice

Figure 24-3
Cozy Stoves produces wood-burning stoves. In order to produce the frames for the stoves, special equipment must be set up. The setup cost per frame is £40. The cost of carrying frames in inventory is £5 per frame per year. The company produces 100,000 stoves per year.
-Refer to Figure 24-3. The number of frames that Cozy Stoves should produce per setup in order to minimize the total setup and carrying costs is

A) 2,828 frames.
B) 1,265 frames.
C) 894 frames.
D) 566 frames.