Answer the Following Questions Using the Information Below:
the Katoomba

Multiple Choice

Answer the following questions using the information below:
The Katoomba Furniture company produces a specialty dining table,and has the following information available concerning its inventory items:
$\begin{array}{ll}\text { Relevant ordering costs per purchase order } & \$ 250 \\\text { Relevant carrying costs per year: } & \\\text { Required annual return on investment } & 10 \% \\\text { Required other costs per year } & \$ 14.00\end{array}$
Annual demand is 1000 tables per year.The purchase price per table is $1600.
-The annual relevant total costs are at a minimum when relevant:

A) carrying costs are equal to relevant ordering costs.
B) ordering costs are greater than the relevant carrying costs.
C) carrying costs are greater than the relevant ordering costs.
D) None of these answers are correct.