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The price of a product is $5.75 a unit. A firm can produce this good with variable costs of $2.25 per unit and total fixed
The price of a product is $5.75 a unit. A firm can produce this good with variable costs of $2.25 per unit and total fixed costs of $1200.
1. A firm annually sells 10,000 units. The cost of placing an order is $80 and the carrying costs are $3.50 a unit. What is the EOQ?
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