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Question - Eren Furniture company produces a specialty furniture product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase order P300 Relevant carrying costs per year: Required annual return on investment 10% Required other costs per year P2.80 Annual demand is 20,000 packages per year. The purchase price per package is P32. What is the economic order quantity? What are the relevant total costs at the economic order quantity? What are the total relevant costs, assuming the quantity ordered equals 1,000 units?
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This individual assignment is based on the TerraCycle Inc.
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