Calculate additional annual cost

Assignment Help Operation Management

Reference no: EM13107668

Garden Variety Flower Shop uses 740 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots.

What additional annual cost is the shop incurring by staying with this order size?

Reference no: EM13107668

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