Comfy Wheels Bus Company Produces Buses

question 62

Multiple Choice

Comfy Wheels 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 $35. The cost of carrying seats in inventory is $6 per seat per year. The company produces 90,000 buses per year.
Total carrying costs (rounded to the nearest dollar) associated with the economic order quantity are

• A)$3,075.
• B)$3,750.
• C)$502.
• D)$328.

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Definitions:

Stress

A psychological and physical response to perceived challenges or threats, resulting in a state of strain or tension that can affect health and well-being.

Cancer

A broad group of diseases characterized by the uncontrolled growth and spread of abnormal cells in the body.

Conflict

A serious disagreement or argument, typically a protracted one, which can occur between individuals, groups, or countries.

Lewin

Kurt Lewin, a German-American psychologist recognized for his field theory in social science and contributions to social psychology, group dynamics, and action research.