(Carrying cost) Katbites manufactures a variety of pet food products from dried seafood pellets. The firm has...
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(Carrying cost) Katbites manufactures a variety of pet food products from dried seafood “pellets.” The firm has determined that its EOQ is 20,000 pounds of pellets. Based on the EOQ, the firm’s annual ordering costs for pellets is $12,700. Given this information, what is the firm’s annual carrying cost of pel¬ lets? Explain.
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