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Business, 26.05.2021 23:50 lif3isanenigma

Pizza store purchases a bag of flour for $20 and it needs 450 bags per year. It incurs a fixed order cost of $1 per order and 5 % annual holding costs. It is offered a 5 % discount if it purchases 200 bags or more. How much does it save each year (including purchasing, ordering, and holding costs) if it purchases enough bags to get the discount

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Pizza store purchases a bag of flour for $20 and it needs 450 bags per year. It incurs a fixed order...
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