Answer the Following Questions Using the Information Below:
the Allianz

question 41

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 are the relevant total costs at the economic order quantity?

• A) $17,390
• B) $10,392
• C) $13,942
• D) $11,800

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Definitions:

Practical and Realistic

Having an approach or mindset focused on dealing with things sensibly and realistically, based on practical rather than theoretical considerations.

Idealistic and Grand

Pertaining to having high ideals or grand ambitions, often characterized by optimism and a desire for significant achievements.

Realistic and Unexciting

Describing something that is practical and possible to achieve but lacks excitement or appeal.

Practical and Logical

Relating to a manner of thinking and problem solving that is based on realistic and rational considerations, often focusing on achieving effective results.