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Sterling Vision Corporation Sterling Vision Corporation Manufactures Various Glass Products Including a Car

Question 139

Multiple Choice

Sterling Vision Corporation
Sterling Vision Corporation manufactures various glass products including a car window.The setup cost to produce the car window is $1,200.The cost to carry a window in inventory is $3 per year.Annual demand for the car window is 12,000 units.
Refer to Sterling Vision Corporation.If the annual demand for the car window was to increase to 15,000 units,


A) the number of setups would decrease.
B) the total carrying costs would increase.
C) the economic order quantity would decline.
D) all of the above would occur.

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