Question: PROBLEM - 5 . ( 1 5 Pts ) Demand for an item is constant at 5 0 0 units a year. Unit cost is

PROBLEM

- 5 . (15

Pts

)

Demand for an item is constant at

500

units a year. Unit cost is $

50,

reorder cost is $

80

and holding cost is

60

per cent of value a year. Any demand that occurs when no stock remains is lost. What is the minimum selling price that makes it profitable to stock the item?

PROBLEM-5.(15 Pts) Demand for an item is constant at 500 units

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