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QUESTION 18 Fabulous Furniture Pty Ltd specialises in the manufacture of office furniture sold to retail outlets located throughout Australia. One of the most popular

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QUESTION 18 Fabulous Furniture Pty Ltd specialises in the manufacture of office furniture sold to retail outlets located throughout Australia. One of the most popular products is the signature office table which requires 80 board feet of timber to manufacture. Each year, 300,000 board feet of timber are used in the manufacture of the signature office table. Timber is currently purchased from external suppliers in lots of 2000 board feet per order. It costs Fabulous Furniture $35 to place the order and carrying costs are $40 per board foot. Calculate EOQ for the signature office table. a. 735 b.725 c. 730 d.718

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