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. The number of seats that should be produced per setup in order to minimize the total setup and carrying costs is

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