Statement-I Working capital leverage measures the responsiveness of return on equity...

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Statement-I: Working capital leverage measures the responsiveness of return on equity for changes in current assets.
Statement-II: When the annual demand for an item is 3,200 units, the unit cost is Rs. 6, inventory carrying charges is 25% p.a., and the cost of one procurementis Rs. 50, the economic ordering quantity would be 700 units.

A. Both statements are correct

B. Both statements are incorrect

C. Statement-I is correct, but Statement-II is incorrect

D. Statement-I is incorrect, but Statement-II is correct

Answer: Option B

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