Answer the Following Question(s)using the Information Below

question 11

Multiple Choice

Answer the following question(s) using the information below:
Sandrington Ltd.operates a retail bicycle shop.Wheel covers are popular with customers.Sandrington purchases these covers for $48 per pair, and expects to sell 5,000 pairs per year.Ordering costs are estimated at $180 per order and relevant insurance handling etc.costs are estimated at $3.60 per month.The company has established a 14% annual return on investment.
-Which of the following factor(s) would cause an increase in the EOQ?

• A)long-run purchasing arrangements, fixing price and quality
• B)electronic commerce
• C)increasing use of purchase order cards
• D)labour intensive procurement methods
• E)increase in carrying cost [C]