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Problem 1: The Katoomba Furniture company produces a specialty dining table, and has the following information available concerning its inventory items. Relevant ordering costs per purchase order: $250; Relevant carrying costs per year - (Required annual return on investment 10%; Required other costs per year $14.00). Annual demand is 1000 tables per year. The purchase price per table is $1600. What is the economic order quantity (EOQ)?
a.100 unitsb.75 unitsc.54 unitsd.150 units
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