Answer the Following Questions Using the Information Below:
the Following

question 38

Multiple Choice

Answer the following questions using the information below:
The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.
$\begin{array}{lr}\text { Annual demand (weekly demand }=1 / 52 \text { of annual demand) } & 13,000 \text { units } \\\text { Orders per year as per EOQ model } & 13 \\\text { Lead time in days } & 15 \text { days } \\\text { Annual relevant carrying costs } & \$ 2,600\end{array}$
-What are the annual relevant ordering costs,assuming that relevant total costs are minimal?

• A) $1,000
• B) $2,253.33
• C) $2,600
• D) $6,000

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Definitions:

Hospital Insurance

Coverage typically part of health insurance policies, paying for hospitalization, surgeries, and related medical expenses.

Hourly Rates

The cost or wage set for one hour of work or service.

Time and a Half

A rate of pay that is 1.5 times the employee's normal wage, typically paid for overtime or holiday work.

Time and a Half

A pay rate that is 1.5 times the employee's standard hourly rate, typically used for overtime work.