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Determine the optimal number of pencils

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Reference no: EM132791302

Number 2 pencils at the campus bookstore are sold at a fairly steady rate of 60 per week. The pencils cost the bookstore 2 cents each and sell for 15 cents each. It costs the bookstore $12 to initiate an order, and holding costs are based on an annual interest rate of 25 percent.

Determine the optimal number of pencils for the bookstore to purchase

What are the yearly holding and setup costs?

Reference no: EM132791302

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