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Frosty's has been able to negotiate a larger credit line with its supplier. So now it has a credit limit of $56,000. It has also
Frosty's has been able to negotiate a larger credit line with its supplier. So now it has a credit limit of $56,000. It has also expanded the storage capacity at its warehouse to 30,000 cubic feet. Figure 1 shows its optimal purchasing decisions with the improved line and the increased storage space.
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