QUESTION $5$

Use the following information to determine the Carrying cost for supplier B:

Table $1$

Order lot size $300$

Annual Requirements $3002$ units

Weight per steering wheel $20$ pounds

Order processing cost $$125$

Inventory carrying rate $20\%$ per year

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Table $2$

Unit Price Supplier A Supplier B

$1$ to $999$ units$/$order $$50$ $$52$

$1000$ to $2,999$ units$/$order $$48$ $$50$

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