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ABC company makes 40 orders of chairs in a year and orders 12,334 chairs each time. The fixed order costs are $474.29 per order and

ABC company makes 40 orders of chairs in a year and orders 12,334 chairs each time. The fixed order costs are $474.29 per order and the carrying cost per unit is $37.62. 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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