Figure 24-5 Big Bus Company Produces Buses. in Order to Produce the Produce

question 2

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.

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Definitions:

Probability

A numerical value representing the chance of an event's occurrence, between 0 and 1, where 0 stands for impossible and 1 for certain.

Ace of Spades

A specific playing card in a deck, often considered the highest card in the suit of spades and sometimes associated with special significance.

Total Count

The complete number of items or entities in a given set or group.

Probability

The quantifying of an event's chance of occurring with a value between 0 and 1.