10.

The following cost formula for total purchasing cost in a factory was developed using monthly data. Total Cost =$235,000+($75 Number of Purchase Orders ) Next month, 8,000 purchase orders are predicted. The total cost predicted for the purchasing department next month a. is $8,000. b. is $235,000. c. is $600,000. d. is $835,000. e. cannot be determined from the above formula. The following cost formula for total purchasing cost in a factory was developed using monthly data. Total Cost =$235,000+($75 Number of Purchase Orders ) Next month, 8,000 purchase orders are predicted. The total cost predicted for the purchasing department next month a. is $8,000. b. is $235,000. c. is $600,000. d. is $835,000. e. cannot be determined from the above formula