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. Cozy Stoves' total carrying costs associated with the economic order quantity are

A) £3,612.
B) £3,162.
C) £506.
D) £316.