Question: The following cost formula for total purchasing cost in a factory was developed using monthly data: Purchasing Cost = $123,800 + ($15 x Number of

The following cost formula for total purchasing cost in a factory was developed using monthly data:

Purchasing Cost = $123,800 + ($15 x Number of Purchase Orders)

Next month, 2,000 purchase orders are predicted. The total cost predicted for the purchasing department next month is:

a. $2,000

  • b. $153,800
  • c.$30,000
  • d. $123,800
  • E. Cannot be determined from the above formula

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