Big Bus Company Produces Buses

question 86

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.

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Definitions:

Synovial Membrane

The lining of a synovial joint that secretes synovial fluid, allowing for smooth movement of the joint.

Symphysis Joints

A type of cartilaginous joint where bones are joined by fibrocartilage, allowing for slight movement.

Fibrocartilage

A tough, very dense type of cartilage that contains fibrous bundles of collagen, such as that found in the intervertebral discs and at the insertions of some tendons and ligaments.

Hyaline Cartilage

A type of connective tissue found in areas such as the nose, trachea, and at the ends of long bones, providing support with some flexibility.