Author Question: The Allianz Company produces a specialty wood furniture product, and has the following information ... (Read 94 times)

dbose · **on:** Mar 6, 2021

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

$470

Relevant carrying costs per year for each package:

Required annual return on investment

13%

Required other costs per year

$5

Annual demand is 33,000 packages per year. The purchase price per package is $49.
What are the relevant total costs at the economic order quantity?
◦ $18,780
◦ $20,387
◦ $11,223
◦ $12,694

lauravaras · **Reply #1 on:** Mar 6, 2021

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