Answer the following questions using the information below:
The following information applies to Labs Plus, which supplies microscopes to laboratories throughout the country. Labs Plus purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

-What are the annual relevant carrying costs, assuming each order was made at the economic-order-quantity amount?
A)$200
B)$1,000
C)$2,000
D)$6,000

Question

Answer the following questions using the information below:
The following information applies to Labs Plus, which supplies microscopes to laboratories throughout the country. Labs Plus purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.
 
-What are the annual relevant carrying costs, assuming each order was made at the economic-order-quantity amount?
A)$200 
B)$1,000 
C)$2,000 
D)$6,000

Quizplus · Accepted Answer

The annual relevant carrying cost is calculated as (EOQ/2) * carrying cost per unit. Assuming the EOQ is calculated correctly, the carrying cost per unit would lead to an annual cost of $2,000.

Answer the Following Questions Using the Information Below