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The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:Relevant ordering costs per purchase order

The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:Relevant ordering costs per purchase order $120. Relevant carrying costs per unit: Required annual return on investment 15%. Out of pocket costs per unit $1.60. Annual demand is 15,000 packages per year. The purchase price per package is $16. What is the economic order quantity?

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