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Demand for an item is 1 0 0 0 units per year. Each order placed costs $ 1 0 . The annual cost to carry

Demand for an item is 1000 units per year. Each order placed costs $10. The annual cost to carry items in inventory is $2 each..Supposing a $100 discount on each order is given if orders are placed in quantities of 500 or more. If orders are placed in quantities of 500, what is the total annual inventory cost (not including purchase cost)?

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