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ABC Company sells 18,515 chairs a year at an average price per chair of $5.89. The carrying cost per unit is $20.27. The company orders
ABC Company sells 18,515 chairs a year at an average price per chair of $5.89. The carrying cost per unit is $20.27. The company orders 276 chairs at a time and has a fixed order cost of $82.08 per order. The chairs are sold out before they are restocked. What are the total costs if the company orders the optimal quantity which is the Economic Order Quantity?
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