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Bruce's Bovine Brunch (BBB) has 2,000 tonnes of feed barley in its silos currently valued at $204.00ftonne, which is surplus to its obligation to supply

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Bruce's Bovine Brunch (BBB) has 2,000 tonnes of feed barley in its silos currently valued at $204.00ftonne, which is surplus to its obligation to supply to customers until January 2013. BBB calculates that there are variable storage costs of $25.00 per tonne per year {including the opportunity cost of holding feed barley). Outline a strategy where BBB could still meet its obligations after January 2013 by having the 2,000 tonnes available, and obtain a cost saving in the interim. One contract is for 20 metric tonnes. Determine what the cost saving is, and the implied 'convenience yield

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