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Economic Order Quantity

A large consulting firm orders photocopying paper by the carton. The firm pays $30 delivery charge on each order. The total cost of storing the paper, including forgone interest, storage space, and deterioration, comes to about $1.50 per carton per month. The firm uses 1,000 cartons of paper per month.

See attached for further instructions. Please select problem 20-12 in file attachment.

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$2.19