The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

Annual demand is 33,000 packages per year. The purchase price per package is $50.
What are the total relevant costs, assuming the quantity ordered equals 1500 units?

Question

The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

Annual demand is 33,000 packages per year. The purchase price per package is $50.
What are the total relevant costs, assuming the quantity ordered equals 1500 units?

Quizplus · Accepted Answer

Unit carrying costs = ($50 × 0.15) + $8 = $15.50
Total relevant costs = 11ea1398_f0eb_992c_a1e4_c32c44469667_TB3027_11 = $22,405

The Allianz Company Produces a Specialty Wood Furniture Product, and Has