Calculate the sum of carrying cost and the shortage cost

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XYZ is a retailer and sells 170,000 units per year. It purchases from a single supplier. Fixed cost per order is $976 and carrying cost is $12 per unit.

Suppose XYZ orders 7,000 units per order from the supplier. Calculate the sum of carrying cost and the shortage cost to nearest integer.

Reference no: EM132460147

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