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	$520
Relevant carrying costs per year for each product:
Required annual return on investment	16%
Required other costs per year	$9

Annual demand is 32,000 prroducts per year. The purchase price per product is $51. What is the economic order quantity?

Question content area bottom

Part 1

A.

1,392.62 units

B.

2,019.51 units

C.

984.73 units

D.

1,922.96 units