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The expected annual usage of a specific raw material used in the production process is 250,000 units, and standard order size is 25,000 units. The
The expected annual usage of a specific raw material used in the production process is 250,000 units, and standard order size is 25,000 units. The invoice cost of each unit is $75, and the cost to place one purchase order is $150. The estimated annual order cost is:
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