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Fashion Clothiers Inc. Assume That Fashion Clothiers Inc.uses 1,440,000 Yards of Material Each

Question 107

Multiple Choice

Fashion Clothiers Inc.
Assume that Fashion Clothiers Inc.uses 1,440,000 yards of material each year.Further, assume that Fashion can order the material at a cost of R2 per yard, plus fixed ordering costs of R100 per order.The firm's carrying cost is 20 percent of the inventory value, at cost.
-Refer to Fashion Clothiers Inc.What is Fashion Clothiers' minimum cost of ordering and holding inventory?


A) R6,254
B) R10,733
C) R11,560
D) R13,563
E) R19,825

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