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1. ABC company makes 15 orders of chairs in a year and orders 4,001 chairs each time. The fixed order costs are $822.77 per order
1. ABC company makes 15 orders of chairs in a year and orders 4,001 chairs each time. The fixed order costs are $822.77 per order and the carrying cost per unit is $47.11. The chairs are sold out before they are restocked. What are the shortage costs if the company orders the optimal quantity (Economic Order Quantity)?
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