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 = = $22,405
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The Allianz Company Produces a Specialty Wood Furniture Product,and Has