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Author Question: The Allianz Company produces a specialty wood furniture product, and has the following information ... (Read 224 times)

CBme

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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$460
 Relevant carrying costs per year for each package:
Required annual return on investment17%
Required other costs per year$6

Annual demand is 33,000 packages per year. The purchase price per package is $50.
What is the annual relevant carrying costs?
◦ $16,308
◦ $13,702
◦ $10,491
◦ $2894


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Marked as best answer by CBme on Mar 6, 2021

meow1234

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