Question: Paper.com receives 5 0 0 , 0 0 0 orders annually with an average revenue per order of $ 1 3 0 and a cost

Paper.com receives 500,000 orders annually with an average revenue per order of $130 and a cost of goods per order of $67.50. Paper.com's current order fill rate is 92%. Colleen estimates that of the orders not filled correctly or completely, 10% of the customers cancel their orders, and 90% will accept a reshipment of the correct/unfilled items. This rehandling costs Paper.com $10 per order. To retain customers, Paper.com reduces the invoice value of rehandled orders by $15.

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