Calculate the sum of carrying cost and the shortage cost

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XYZ is a retailer and sells 130,000 units per year. It purchases from a single supplier. Fixed cost per order is $990 and carrying cost is $14 per unit.

Suppose XYZ orders 7,000 units per order from the supplier. Calculate the sum of carrying cost and the shortage cost.

Enter the answer rounded to the nearest integer.

Reference no: EM132465391

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