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Business, 22.04.2020 00:00 val186

Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 900 kg of palm oil per day on average. The supplier charges a $57 delivery fee per order (which is independent of the order size) and $5.25 per kg. Sarah’s annual holding cost is 20 percent. Assume she operates and sells five days per week, 52 weeks per year.

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Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is or...
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