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Ordering cost is 55 per order and annual holding cost per

M.P. VanOyen Manufacturing has gone out on a bid for a regular component. Expected demand is700 units per month (not per year). The item can be purchased from either Allen Manufacturing or Baker Manufacturing. The price lists are shown below in the table. Ordering cost is $55 per order, and annual holding cost per unit is $6. Allen Manufacturing Quantity Price / Unit 1

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Business Management: Ordering cost is 55 per order and annual holding cost per

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