Answer the Following Questions Using the Information Below:
the Katoomba

question 64

Multiple Choice

Answer the following questions using the information below:
The Katoomba Furniture company produces a specialty dining table,and has the following information available concerning its inventory items:
$\begin{array}{ll}\text { Relevant ordering costs per purchase order } & \$ 250 \\\text { Relevant carrying costs per year: } & \\\text { Required annual return on investment } & 10 \% \\\text { Required other costs per year } & \$ 14.00\end{array}$
Annual demand is 1000 tables per year.The purchase price per table is $1600.
-How many deliveries will be required at the economic order quantity (EOQ) ?

• A)5.1 deliveries
• B)8.2 deliveries
• C)1.0 delivery
• D)18.5 deliveries

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