Steeplechase Building Specialties manufactures metal stud to accommodate commercial framing contractors in the United States. The managerial accountant reported to the operations manager that there is an order to manufacture 2,000 bundles of metal stud during the month. The managerial accountant reported the following information:

Variable Coefficient

Constant $120

Independent Variable $220

Determine the cost equation for the managerial accountant and predict the operating costs at a volume of 2,000 bundles of metal stud at Steeplechase Building Specialties.

A. $440,120

B. $120

C. $340

D. $220