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Author Question: The Allianz Company produces a specialty wood furniture product, and has the following information ... (Read 199 times)

Anajune7

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The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

Relevant ordering costs per purchase order$550
 Relevant carrying costs per year for each package:
Required annual return on investment17%
Required other costs per year$7

Annual demand is 30,000 packages per year. The purchase price per package is $53.
Which of the following statements is true of Allianz's EOQ system costs?
◦ At EOQ, the annual relevant ordering costs is exactly the half of annual relevant carrying costs.
◦ At EOQ, the annual relevant carrying costs is higher than the annual relevant ordering costs.
◦ At EOQ, the annual relevant carrying costs is exactly the half of the annual relevant total costs.
◦ At EOQ, the annual relevant carrying costs is equal to the annual relevant total costs.


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Marked as best answer by Anajune7 on Mar 6, 2021

Anton

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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