Suppose that to maintain a target service level, the buyer has determined an underage cost of $550
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Question:
Suppose that to maintain a target service level, the buyer has determined an underage cost of $550 per unit. The unit cost of the handbag to the store is $28.50 and each handbag will sell for $150.00. Then the implied penalty for loss of customer goodwill is: $________ per unit. (Please do NOT round your answer)
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