Preparing an order and receiving a shipment of flour

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Reference no: EM1385909

A large bakery buys flour in 25 lb bags. The bakery uses on average 4,860 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annually carrying costs are $75 per bag. What is the average number of bags on hand?

Reference no: EM1385909

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