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MamaMia’s Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia’s delivers on-average 200 pizzas each month (assume deterministic demand). Boxes cost 20 cents each, and each order costs $10 to process. Because of limited storage space, the manager wants to charge inventory holding at 30 percent of the cost. The lead time is 7 days, and the restaurant is open 360 days per year, assuming 30 days per month. How much does it cost per year to hold one pizza delivery box? The answer should be in dollar amount.
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