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

Purchasing Cost ¼ $123,800 þ ($15 3 Number of Purchase Orders)

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

a. is $2,000.

b. is $153,800.

c. is $30,000.

d. is $123,800.

e. cannot be determined from the above formula.