Question: b. Suppose the retailer chooses the second plan and only buys at the discount price ($9.40 is the regular price and a 7 percent discount

b. Suppose the retailer chooses the second plan and only buys at the discount price ($9.40 is the regular price and a 7 percent discount for delivery at the start of each quarter).

What is the retailers expected annual purchasing and inventory holding cost?

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