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.

---

Definitions:

Third Party

An entity involved in a situation or agreement (such as mediation or arbitration) that is neither of the two primary parties involved.

Employee Free Choice

Proposed legislation aimed at making it easier for workers to join or form a union through majority sign-up or card check rather than an election.

Anonymous Phone Calls

Telephone calls made without revealing the caller's identity, often used for confidential tips or harassment.

Financial Futures

Contracts to buy or sell financial instruments or commodities at a future date, used for hedging or speculation on the future price movements.