Question: Consider a basic economic order quantity ( EOQ ) model with the following characteristics: Item cost: $ 1 5 Item selling price: $ 2 0

Consider a basic economic order quantity (EOQ) model with the
following characteristics:
Item cost: $15
Item selling price: $20
Monthly demand: 500 units (constant)
Annual holding cost: $1.35 per unit
Cost per order: $18
Order lead time: 5 working days
Firm's work year: 300 days (50 weeks @ 6 days per week)
Safety stock: 15% of monthly demand
For this problem, determine the values of:

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