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A store estimates their holding costs at 2 5 % of purchase price ( COGS ) and incurs a fixed cost of $ 5 0
A store estimates their holding costs at of purchase price COGS and incurs a fixed cost of $ for each order. Demand for an item is units per year. A supplier offers a price of $ each for quantities of or fewer and a price of $ for quantities over units.
What is the difference in annual procurement purchase costs between the regular and discount?
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