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XYZ is a retailer and sells 115,000 units per year. It purchases from a single supplier. Fixed cost per order is $815 and carrying cost

XYZ is a retailer and sells 115,000 units per year. It purchases from a single supplier. Fixed cost per order is $815 and carrying cost is $15 per unit.

Suppose XYZ orders 6,000 units per order from the supplier. Calculate the sum of carrying cost and the shortage cost.

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