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Q.6 A bakery carries an average inventory of $3,000 in cakes. The cakes require special storage, as they need to be kept refrigerated and are

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Q.6 A bakery carries an average inventory of $3,000 in cakes. The cakes require special storage, as they need to be kept refrigerated and are perishable. The bakery estimates capital costs at 10%, storage costs at 25%, and risk costs at 50%. What is the annual carrying cost

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