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Fashion ClothiersAssume that Fashion Clothiers Inc. uses 1,440,000 metres of material each year. ...

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Fashion ClothiersAssume that Fashion Clothiers Inc. uses 1,440,000 metres of material each year. ...

Fashion Clothiers
Assume that Fashion Clothiers Inc. uses 1,440,000 metres of material each year. Further, assume that Fashion can order the material at a cost of $2 per metre, plus fixed ordering costs of $100 per order. The firm's carrying cost is 20% of the inventory value, at cost.

Refer to Scenario: Fashion Clothiers. What is Fashion Clothiers’ minimum costs of ordering and holding inventory?

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$ 6,254

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$10,733

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$11,560

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$13,563

Textbook

Financial Management: Theory and Practice

Edition: 4^th

Authors: Brigham, Ehrhardt, Gessaroli, Nason

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