Multiple Choice
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. Total setup costs associated with the economic order quantity are
A) $3,953.
B) $3,612.
C) $3,162.
D) $1,778.
Correct Answer:

Verified
Correct Answer:
Verified
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