Question
XYZ is a retailer and sells 145,000 units per year. It purchases from a single supplier. Fixed cost per order is $860 and carrying cost
XYZ is a retailer and sells 145,000 units per year. It purchases from a single supplier. Fixed cost per order is $860 and carrying cost is $7 per unit.
Suppose XYZ orders 5,000 units per order from the supplier. Calculate the sum of carrying cost and the shortage cost.
Enter your answer rounded to the nearest integer. Margin for error: +/- 1
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
