The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

What are the annual relevant ordering costs, assuming that relevant total costs are minimal?
A) $824
B) $3719
C) $3500
D) $3294

Question

The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.

What are the annual relevant ordering costs, assuming that relevant total costs are minimal?

What are the annual relevant ordering costs, assuming that relevant total costs are minimal?
A) $824 
B) $3719 
C) $3500 
D) $3294

Quizplus · Accepted Answer

In EOQ decision model, annual relevant ordering costs and annual relevant carrying costs are equal when relevant total costs are minimal at the EOQ.

The Following Information Applies to Krynton Corp