Answer the Following Questions Using the Information Below:
the Allianz

question 31

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 annual relevant ordering costs?

• A) $5,196
• B) $8,695
• C) $6,971
• D) $9,547

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Definitions:

Best Interests

A standard or principle often used in legal and ethical contexts to determine the most beneficial outcome for an individual, typically in the context of medical, familial, or fiduciary decisions.

Labor Force

The total number of people both employed and actively seeking employment within an economy.

Opportunity Cost

The cost of missing out on the best available alternative due to a decision.

Married Women

Women who are legally united in marriage to a spouse, with the conjugal status impacting various legal, social, and economic considerations.