Q350
If relevant incremental costs are 5000 and relevant opportunity cost of invested capital is 2500, then relevant inventory carrying costs would be
A.
$7,500
AnswerB.
$7,000
C.
$6,500
D.
$6,000
Answer: Option A
Solution
Answer: Option A
Solution:
Relevant inventory carrying costs = Relevant incremental costs + Relevant opportunity cost of invested capital = 2500 = $7,500