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In an ordering decision, the cost for the store to purchase a unit from its supplier is 32. The store sells each unit for a price of 55. If the store runs out of inventory, it can special order more at a cost of 12 per unit above the original cost. Alternatively, if demand is smaller than supply, the store can sell the leftover units at half price to an inventory buyer.

What is the payoff if the store buys 50 units and demand is 60?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92201807

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