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Faber Manufacturing, Inc., of St. Paul, Minnesota, purchases 10,000 top-of-the-line semiconductor; unit purchase price = $35.00; and their maximum backordering quantity in units is 450.
Faber Manufacturing, Inc., of St. Paul, Minnesota, purchases 10,000 top-of-the-line semiconductor; unit purchase price = $35.00; and their maximum backordering quantity in units is 450. If the firm's customers do not object to backordering and each unit backordered costs $ 5.00/year, then: What is the total annual cost?
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