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What are total purchase and oversight costs

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What are total purchase and oversight costs if annual demand of a product in a company is 1,000,000 units, and the purchase price is $2.42 per unit, and the management oversight costs to monitor and expedite the trans-Pacific shipment are $0.16 per unit?

1. Procurement costs (2 marks) =

2. Management oversight cost (2 marks) =

3. Total Cost (2 marks) =

(Please show your work to earn your grade).

Reference no: EM133136016

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