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The Cindy Fashion uses about 200000 yards of a particular fabric each year The fabric costs P150 per yard The current policy is to order the fabric 8 times a year Incremental ordering costs ate

The Cindy Fashion uses about 200,000 yards of a particular fabric each year. The fabric costs P150 per yard. The current policy is to order the fabric 8 times a year. Incremental ordering costs ate about P900 per order, and incremental carrying costs are about P0.75 per yard, much of which represents the opportunity cost of the funds tied up in inventory. How much total annual costs are associated with the current inventory policy?
A. P16,575        C. P25,950
B. P18,750        D. P9,200 

Jun 20 2021 View more View Less

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