XYZ COMPANY NEEDS TO PURCHASE 600,000 UNITS IN 2023 FROM ITS SUPPLIER. ORDER COSTS ARE $25 PER ORDER, AND CARRYING COSTS ARE $23/UNIT PER YEAR. XYZ COMPANY HAS A HURDLE RATE OF 8%, AND THE UNITS THAT XYZ PURCHASES FROM ITS SUPPLIER COST $400/UNIT.

19. What is the EOQ for XYZ Company? a. 539 units. b. 639 units. c. 739 units. d. 839 units.

20. What is the total relevant cost (ordering cost + carrying cost) for the year for XYZ Company at an order size equal to 1000 units?

1. $42,500
2. $43,000
3. $43,500
4. $44,000