Big Bus Company Produces Buses

question 73

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.
-Refer to the figure.What are the total carrying costs (rounded to the nearest dollar) associated with the economic order quantity?

• A)$316
• B)$506
• C)$3,163
• D)$3,613

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Definitions:

Content Conflict

Conflict that tends to focus on disagreements over what a statement or concept means.

Job Description

A formal account of an employee's responsibilities, duties, and the scope of the job they're employed to do.

Ambiguous

Something that can be understood in more than one way or is not explicitly defined, leading to uncertainty or confusion.

Thomas-Kilman Conflict Model

A framework that identifies five approaches individuals use to handle conflict: avoiding, accommodating, competing, compromising, and collaborating.