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XYZ is a retailer and sells 105,000 units per year. It purchases from a single supplier. Fixed cost per order is $924 and carrying cost
XYZ is a retailer and sells 105,000 units per year. It purchases from a single supplier. Fixed cost per order is $924 and carrying cost is $11 per unit.
Suppose XYZ orders 7,000 units per order from the supplier. What are the total costs (sum of carrying costs and shortage costs)?
Round off your answer to two decimal points.
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