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

---

Definitions:

Sensory Interaction

The principle that one sense can influence another, as when the smell of food affects its taste.

Green-colored

Characterized by or having the color of green, which is visually perceived between blue and yellow.

Difference Thresholds

the minimum difference in stimulus intensity required to detect a difference between two stimuli.

Clairvoyance

The supposed ability to gain information about an object, person, location, or physical event through extrasensory perception.