Explain fixed ordering costs

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Reference no: EM13111232

Presume that Latest Fashionable Clothes Inc. uses 1,440,000 yards of material each year.
Further accept that Latest Fashionable 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.

Reference no: EM13111232

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