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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
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