Figure 24-3
Cozy Stoves produces wood-burning stoves. In order to produce the frames for the stoves, special equipment must be set up. The setup cost per frame is £40. The cost of carrying frames in inventory is £5 per frame per year. The company produces 100,000 stoves per year.
-Refer to Figure 24-3. Cozy Stoves' total setup costs associated with the economic order quantity are
A) £3,953.
B) £3,612.
C) £3,162.
D) £1,778.
Correct Answer:
Verified
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