(The following information applies to the next three problems.)
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 $2 per yard, plus fixed ordering costs of $100 per order. The firm's carrying cost is 20 percent of the inventory value, at cost.
-What is Fashion inventory? Clothiers' minimum
Costs of ordering and holding
A) $ 6,254
B) $10,733
C) $11,560
D) $13,563
E) $19,825

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The Answer of (The following information applies to the next three problems.)
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 $2 per yard, plus fixed ordering costs of $100 per order. The firm's carrying cost is 20 percent of the inventory value, at cost.
-What is Fashion inventory? Clothiers' minimum
Costs of ordering and holding
A) $ 6,254
B) $10,733
C) $11,560
D) $13,563
E) $19,825

(The Following Information Applies to the Next Three Problems