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1. The annual demand for a product is 8,000 units. The order cost is $30 for a single order. The cost of the item is $10 and the holding cost has been calculated at $3 to carry one item in stock for one year.
Calculate:
(a) The optimum order quantity
(b) The number of orders to be placed annually and
(c) The overall costs.
Breakeven Problem 1. Avila Manufacturing plans to increase capacity by adding new equipment. They have received two proposals. Fixed CostVariable Cost/Unit Proposal A $32,
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