Illustrate what additional annual cost is the shop incurring

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Q. Flower shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost also ordering costs are $20 per order. The manager has been utilizing an order size of 1,500 flower pots.

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

Reference no: EM1377887

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