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