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What is the average annual cost of holding and setup

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Swedish Chef has been selling meatballs at a rate of 5,000 kilograms meatballs annually. The Chef procures his meatballs locally for $2.02 per kilogram. It costs the Chef $73.38 in labor and paperwork to place an order. The holding costs are based on 14.90 percent annual interest rate.

What is the average annual cost of holding and setup for the meatballs?

Reference no: EM132394505

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