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The Fairhaven Company estimates that it will need 18,000 units of Material X next year,...

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Accounting

The Fairhaven Company estimates that it will need 18,000 units of Material X next year, at a cost of P15 per unit. The estimated carrying cost is 20% of the average inventory investment, and the cost to place an order is calculated to be P15.

How much is the total inventory cost (carrying and ordering costs) related to economic order quantity?

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