The following cost formula for total purchasing cost in a factory was developed using monthly data. [text
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The following cost formula for total purchasing cost in a factory was developed using monthly data.
\[\text { Purchasing cost }=\$ 56,000+(\$ 2 \times \text { Number of purchase orders })\]
Next month, 800 purchase orders are predicted. The total cost predicted for the purchasing department next month
a. is \(\$ 56,000\).
b. is \(\$ 1,600\).
c. is \(\$ 57,600\).
d. is \(\$ 800\).
e. cannot be determined from the above formula.
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Related Book For
Fundamental Cornerstones Of Managerial Accounting
ISBN: 9780333623183
1st Edition
Authors: Dan L. Heitger, Maryanne M. Mowen, Don R. Hansen
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