Question
The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase order
The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
| Relevant ordering costs per purchase order | $450 |
| Relevant carrying costs per year for each package: | |
| Required annual return on investment | 13% |
| Required other costs per year | $6 |
Annual demand is 31,000 packages per year. The purchase price per package is $48.
What is the annual relevant carrying costs?
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
