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Calculate the sum of carrying cost and the shortage cost

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Reference no: EM132459988

XYZ is a retailer and sells 188,000 units per year. It purchases from a single supplier. Fixed cost per order is $952 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.

Reference no: EM132459988

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