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The Interstate Carpet Discount Store has annual demand of 1 0 , 0 0 0 yards of Super Shag carpet. The annual carrying cost for
The Interstate Carpet Discount Store has annual demand of
yards of Super Shag carpet. The annual carrying cost
for a yard of this carpet is $ and the ordering cost is
$ The carpet manufacturer normally charges the store $
per yard for the carpet. However, the manufacturer has offered
a discount price of $ per yard if the store will order
yards. How much should the store order, and what will
be the total annual inventory cost for that order quantity?
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