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Compute what is the annual ordering cost of cheese inventory

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Cheeseburger and Taco Company purchases 18,783 boxes of cheese each year. It costs $27 to place and ship each order and $7.84 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Question 1: What is the annual ordering cost of cheese inventory. Round the answer to two decimals.

Reference no: EM132573219

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