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To date, Raymond Bro. has been purchasing an item in lots of 900 units. This equates to a three-month supply. The cost per unit is

To date, Raymond Bro. has been purchasing an item in lots of 900 units. This equates to a three-month supply. The cost per unit is $12, the order cost is $16 per order, and the carrying cost is 25%.
Required: How much can Raymond Bro. save per year by purchasing the item in the most economical quantities?

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