Big Bus Company Produces Buses

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 carrying costs (rounded to the nearest dollar) associated with the economic order quantity are

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