10 minute

The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:Relevant ordering costs per purchase order $150. Required annual return on investment 10%. Out of pocket costs per unit $1.40. Annual demand is 10,000 packages per year. The purchase price per package is $16. What are the total relevant costs, assuming the quantity ordered equals 500 units? Select one: a. $4,000 b. $3,500 c. $500 d. $3,750