If a Factory Wants to Cut Its Current Lot Size

Multiple Choice

If a factory wants to cut its 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) Setup cost must quadruple from its current value.