Question: 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

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 mini- mum selling price that makes it profitable to stock the item? 2

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