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Imagine that you are working in a federal government office as a government employee. You have been tasked with preparing an Independent Government Cost Estimate (IGCE) for a two-million-dollar procurement. The purchase is for the construction of fifty (52) towers with cameras and radar. The period of the contract is ten (10) years. The contract will also include training for the camera operators.
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Lott Manufacturing Corporation has been ordering parts for its production process in lots of 10,000 units. Each order costs the company $50 to place, and holding costs per unit average $3.
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