This is a mail-order business for kitchen equipment annual, Operation Management

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This is a mail-order business for kitchen equipment annual

This is a mail-order business for kitchen equipment. Annual demand for its best seller item is 25,000 units. This best seller item is sold at $350/unit, including shipping and handling. It has an earning markup of 20%. The annual holding cost per unit for this best seller is $5.50. The cost to process an order of this item is $25. It takes ten (10) days to completely process an order. Assume that the year has 360 days.

What is the Total Annual Cost (TC) for this best seller item?

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Operation Management: This is a mail-order business for kitchen equipment annual

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