Figure 24-5 Big Bus Company Produces Buses. in Order to Produce the Produce

Multiple Choice

Figure 24-5
Big Bus Company produces buses. In order to produce the seats for the buses, special equipment must be set up. The setup cost per frame is £40. The cost of carrying seats in inventory is £5 per seat per year. The company produces 100,000 buses per year.
-Refer to Figure 24-5. Total setup costs associated with the economic order quantity are

A) £3,953.
B) £3,612.
C) £3,162.
D) £1,778.