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On a weekly basis, a consumer-packaged goods (CPG) company has 750 corporate buyers of its 25oz canister of steel cut oats. This week, the CPG
On a weekly basis, a consumer-packaged goods (CPG) company has 750 corporate buyers of its 25oz canister of steel cut oats. This week, the CPG is having supply issues and doesnt have the item available for orders its customers place. However, the company does make its 54oz canister of quick-minute traditional oats available to buyers. Due to the unavailability of the 25oz canister of steel cut oats, 35% of the corporate buyers decide to purchase the 54oz canister of quick-minute traditional oats this week, while the rest of the corporate buyers decide not to purchase any product this week. Given the profit margin on both items in $2.75, what is the cost of a stock out per unit of the 25oz canister of steel cut oats to the CPG this week? a. $1.79 b. $1.87 c. $1.97 d. $1.78
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