Abc company sells 2108 chairs a year at an average price, Finance Basics

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Abc company sells 2108 chairs a year at an average price

Question: ABC Company sells 2,108 chairs a year at an average price per chair of $174. The carrying cost per unit is $19.65. The company orders 319 chairs at a time and has a fixed order cost of $59.4 per order. The chairs are sold out before they are restocked. What are the total shortage costs? Enter your answer rounded off to two decimal points.

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