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Find the total cost predicted for the purchasing department

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Reference no: EM132119022

Question - 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

Reference no: EM132119022

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