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
B. $7,000
C. $6,500
D. $6,000
Answer: Option A
Solution(By Examveda Team)
Relevant inventory carrying costs = Relevant incremental costs + Relevant opportunity cost of invested capital= $5000 + $2500 = $7,500
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