Answer the Following Questions Using the Information Below:
the Allianz

question 35

Multiple Choice

Answer the following questions using the information below:
The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
$\begin{array} { l } \text {Relevant ordering costs per purchase order }&\$450 \\ \text {Relevant carrying costs per year for each package: }& \\ \text { Required annual return on investment}& 15\%\\ \text {Required other costs per wear }& \$4\\\end{array}$
Annual demand is 30,000 packages per year. The purchase price per package is $48.
-What is the economic order quantity?

• A) 1,936.50 units
• B) 1,414.21 units
• C) 1,552.65 units
• D) 2,598.07 units

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Definitions:

Proved Reserves

Quantities of natural resources like oil or gas that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operational conditions.

Fluctuated

Describes variations or changes in level, strength, or value over a period of time.

Proved Reserves

Quantities of natural resources, like oil or gas, that geological and engineering information indicates with reasonable certainty can be recovered under existing economic and operating conditions.

Natural Gas

A fossil fuel composed mainly of methane, used as an energy source for heating, cooking, and electricity generation.