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You have calculated the EOQ for an item and determined that you should order in quantities of 1 8 , 9 0 0 units. Annual
You have calculated the EOQ for an item and determined that you should order in quantities of units. Annual demand for this item is The purchase price for the item is $ per unit. Your supplier would like to ship full truckloads and has offered a discount of if you increase your order to a full truckload. The holding cost for this unit is of the purchase price per unit per year. If you agree to the larger shipping quantity, what will be the holding cost per unit?
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