Solution-What are relevant total costs at the economic

What are relevant total costs at the economic order quantity

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Reference no: EM132634272

The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

Relevant ordering costs per purchase order $300

Relevant carrying costs per year:

Required annual return on investment 10%

Required other costs per year $2.80

Annual demand is 20,000 packages per year. The purchase price per package is $32.

Problem 1: What are the relevant total costs at the economic order quantity?

Reference no: EM132634272

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What are relevant total costs at the economic order quantity

Reference no: EM132634272

Reference no: EM132634272

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