Question: Problem 1 - Points ( 4 0 ) A specialty coffee house sells Colombian coffee at a steady rate of 6 , 7 0 0

Problem 1- Points (40)
A specialty coffee house sells Colombian coffee at a steady rate of 6,700 pounds annually. The
beans are purchased from a local supplier for $3.60 per pound. The coffee house estimates that it
costs them $65 in paperwork and labor to place an order for the coffee. Holding costs are based on
a 25% annual rate. (Show your calculations for all questions):
Using the information from the specialty coffee house, now suppose the coffee from Problem 1 has
a shelf life of 1 month
How about if it would keep the coffee for up to 4 months? Hint: compare the TAC for
each option and make your decision. explain the same way

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