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A large manufacturer of flu vaccines, Covix is deciding on how many vaccine shots to manufacturer to this year's flu season. The demand for flu
A large manufacturer of flu vaccines, Covix is deciding on how many vaccine shots to manufacturer to this year's flu season. The demand for flu shot is uncertain, and any flu shots remaining at the end of season must be discarded. The cost to product each flu shot is $10, and each flu is sold to customers for $25. The government would like Covix to increase its service level of flu show. It has therefore offered to buy back unsold shots as the end of the season for $5 per shot. What are Covix's cost of understocking and cost overstocking? Group of answer choices Cu = $15, Co = $10 Cu = $15, Co = $5 Cu = $20, Co = $10 Cu = $15, Co = $15
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