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

question 131

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 $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.
-Refer to Fashion Clothiers Inc.What is Fashion Clothiers' minimum cost of ordering and holding inventory?

• A) $6,254
• B) $10,733
• C) $11,560
• D) $13,563
• E) $19,825

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Definitions:

Flexible Budget

A flexible financial blueprint that shifts with alternations in activity volume or intensity.

Catering Supplies

Materials and goods used in the provision of catering services, including food, beverages, utensils, and equipment.

Jobs

Specific tasks or projects within an organization, often defined by a set of responsibilities or activities.

Meals

Food services provided, often in contexts such as schools, hospitals, or large events, but can also refer to the food products themselves.