Q347
If relevant opportunity cost of capital is 2950 and relevant carrying cost of inventory is 6700, then relevant incremental cost will be
A.
$9,650
B.
$2,350
C.
$3,750
AnswerD.
$2,750
Answer: Option C
Solution
Answer: Option C
Solution:
Relevant incremental cost = Relevant carrying cost of inventory - Relevant opportunity cost of capital = 2950 = $3,750