Problem 1: The Katoomba Furniture company produces a specialty dining table, and has the following information available concerning its inventory items. Relevant ordering costs per purchase order: $250; Relevant carrying costs per year - (Required annual return on investment 10%; Required other costs per year $14.00). Annual demand is 1000 tables per year. The purchase price per table is $1600. Determine the economic order quantity (EOQ)?
a. 100 units
b. 75 units
c. 54 units
d. 150 units