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

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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, unit cost Rs. 6, inventory carrying charges 25% per annum and cost of one procurement Rs. 150, the economic ordering quantity would be 700 units.

A. Both statements are true

B. Both statements are false

C. Statement I is true, but Statement II is false

D. Statement I is false, but Statement II is true

Answer: Option B

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