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Demand for an item is constant at 50 units a year. Unit cost is $25, reorder cost is $20 and holding cost is 40 per
Demand for an item is constant at 50 units a year. Unit cost is $25, reorder cost is $20 and holding cost is 40 per cent of value a year. Any demand that occurs when no stock remains is lost. What is the minimum selling price that makes it protable to stock the item? Choose the nearest answer.
$13.83
$30.83
$33.83
$27.83
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