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	$510
Relevant carrying costs per year for each product:
Required annual return on investment	15%
Required other costs per year	$7

Annual demand is 30,000 products per year. The purchase price per product is $50. What is the annual relevant carrying costs?

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Part 1

A.

$15,158

B.

$10,532

C.

$2,905

D.

$14,644