Crimson Wheels Bus Company Produces Buses

question 33

Multiple Choice

Crimson 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 $20. The cost of carrying seats in inventory is $5 per seat per year. The company produces 125,000 buses per year.
The number of seats that should be produced per setup in order to minimize the total setup and carrying costs is:

• A)1,920 seats.
• B)3,000 seats.
• C)1,000 seats.
• D)2,200 seats.

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Definitions:

Iron

A chemical element with symbol Fe and atomic number 26, known for its high strength and magnetic properties.

Limiting Reactant

The reactant in a chemical reaction that limits the amount of product that can be formed because it is used up first.

Theoretical Yield

The maximum amount of product that can be generated from a given amount of reactants in a chemical reaction, under ideal conditions.

Limiting Reactant

The reactant in a chemical reaction that limits the amount of product that can be formed; the reaction stops when all of this reactant is consumed.