Starbucks buys espresso coffee beans

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Question

Your out-of-the-way Starbucks buys espresso coffee beans in 25 pound bags; your growth has increased the need to an average of 983 bags per year. Preparing an order and receiving each bag costs $2.74 per order. Annual carrying costs are $0.32 per bag. What will be their total cost of ordering and carrying the coffee?

Reference no: EM133632114

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