Q346
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
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Annual relevant ordering cost = (18000 ÷ (1500/150 × 100)) = $180