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XYZ is a retailer and sells 1 4 1 , 0 0 0 units per year. It purchases from a single supplier. Fixed cost per

XYZ is a retailer and sells

141, 000

units per year. It purchases from a single supplier. Fixed cost per order is $

945

and carrying cost is $

6

per unit.

Suppose XYZ orders

8, 000

units per order from the supplier. What are the total costs?

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