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Firm A's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit
Firm A's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 15 units or higher. Firm A incurs a 25% annual holding cost. Firm A orders at a quantity of 28 units. What is its total annual cost, including purchasing cost (round to the nearest dollar)? Multiple Choice $1,620 $1,684 $1,256 $1,260
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