The supplier is offering a purchase price break

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A service garage uses 120 boxes of cleaning cloths per year. The boxes cost $6/each. Ordering costs are $3/order and holding cost is 10% of the purchase price per box per year. The supplier is offering a purchase price break. If the garage orders 50 boxes per order, the price will be reduced to $5.75 per box. What is the total cost (TC) at Q=50?

Reference no: EM13968965

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