Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below:
Sandrington Ltd.operates a retail bicycle shop.Wheel covers are popular with customers.Sandrington purchases these covers for $48 per pair, and expects to sell 5,000 pairs per year.Ordering costs are estimated at $180 per order and relevant insurance handling etc.costs are estimated at $3.60 per month.The company has established a 14% annual return on investment.
-Which of the following factor(s) would cause an increase in the EOQ?

A) long-run purchasing arrangements, fixing price and quality
B) electronic commerce
C) increasing use of purchase order cards
D) labour intensive procurement methods
E) increase in carrying cost [C]