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Mike's Electronics Pty purchase 100 voice recorder per week and incur purchase cost of N$384 000 annually. The holding cost per unit is 10%
Mike's Electronics Pty purchase 100 voice recorder per week and incur purchase cost of N$384 000 annually. The holding cost per unit is 10% of purchase cost and the cost of placing an order is $300. The company operate 10 months per year. The supplier offers a 0.5% discount for orders of 1 000 voice recorders. What is the annual ordering cost, based on the economic order quantity?
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