Question discussion

If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost…

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If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be
  • A$200
  • B$190
  • C$160
  • D$180
Correct answer: D

Discussion 1

0
CCommunity
$180

Annual relevant ordering cost
= (18000 ÷ (1500/150 × 100)) = $180