Crimson 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 $20 The cost of carrying seats in inventory is $5 per seat per year The company produces 125,000 buses per year.

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

Answer rating: 100% (QA)

Carrying costs are calculated by dividing the total inventory value by the cost of storing the goods ... View the full answer