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:

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to targets of growth and development.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation, communication, water, and power systems.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in a market, aiming to keep prices within a certain range.

Exports

Goods or services sent from one country to another for sale or trade.