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Warren Enterprises Expects 20,000 Unit Sales, Has Ordering Costs of $20

Question 136

Multiple Choice

Warren Enterprises expects 20,000 unit sales, has ordering costs of $20 per order, carrying costs of $1.00 per unit, and desires to keep 100 units in safety stock. Assuming level production, what should be its average inventory?


A) 200-300
B) 301-400
C) 401-500
D) 501-600

Correct Answer:

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