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The company Paradis Inc. produces bicycles and its annual production reaches 50 000 units per year. It purchases wheels from an outside supplier at a

The company Paradis Inc. produces bicycles and its annual production reaches 50 000 units per year. It purchases wheels from an outside supplier at a cost of $15 each. The ordering costs are $500 per order while the annual storage costs per wheel are $2. The selling price of each bicycle is $200.

Draw the curve to determine the economic quantity to be ordered.

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