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SS purchases one model of computer at a wholesale cost of $400 per unit and resells it to end consumers. The annual demand for the
SS purchases one model of computer at a wholesale cost of $400 per unit and resells it to end consumers. The annual demand for the companys product is 500,000 units. Ordering costs are $1,000 per order and carrying costs are $80 per computer, including $30 in the opportunity cost of holding inventory.
The annual relevant total costs = $141,440.
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