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What minimum selling price that makes it profitable stock

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Reference no: EM132461222

Demand for an item is constant at 100 units a year. Unit cost is £50, reorder cost is £40 and holding cost is 40% of value a year. Any demand that occurs when no stock remains is lost.

Question 1: What is the minimum selling price that makes it profitable to stock the item?

Reference no: EM132461222

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