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Sweet Tooth Company Manufactures Candy

Question 113

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Sweet Tooth Company manufactures candy. The company buys chocolate used in the candy in 10-pound boxes that cost $10 each. The company uses 30,000 of the boxes per year, and usage occurs evenly throughout the year.
The average cost to carry a 10-pound box in inventory per year is $4, and the cost to place an order is $3.
Required:
Sweet Tooth Company manufactures candy. The company buys chocolate used in the candy in 10-pound boxes that cost $10 each. The company uses 30,000 of the boxes per year, and usage occurs evenly throughout the year. The average cost to carry a 10-pound box in inventory per year is $4, and the cost to place an order is $3. Required:

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