The following information applies to Krypton Corp. which supplies microscopes to laboratories throughout the country. Krypton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

Annual demand(weekly demand=1/52 of annual demand) 14,000 units

Orders per year as per EOQ model 17

Lead time in days 16 days

Annual relevant carrying costs $3,500

What are the annual relevant ordering costs, assuming that relevant total costs are minimal?

Answer: $3,500

Note: How would I calculate the relevant ordering costs with this information? I noticed while doing other calculations that the relevant ordering costs and relevant carrying costs are always the same number, why is that? Thank you.