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 $150

Relevant carrying costs per year:

Required annual return on investment 10% of purchase price

Required other costs per year $1.40

Annual demand is 10,000 packages per year.

The purchase price per package is $16.

What are the relevant total costs at the economic order quantity?

Question 44 options:

	$1,000
	$1,500
	$3,000
	$3,500

Required other costs per year $1.40

Annual demand is 10,000 packages per year.

The purchase price per package is $16.

What are the relevant total costs at the economic order quantity?