Reference no: EM132633584

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

Relevant ordering costs per purchase order $510

Relevant carrying costs per year for each package:

Required annual return on investment 15%

Required other costs per year $4

Annual demand is 35,000 packages per year. The purchase price per package is $52.

Problem 1: How many deliveries will be required at the economic order quantity?

a. 16 deliveries

b. 17 deliveries

c. 21 deliveries

d. 24 deliveries

e. None of the above.