ABC has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this magazine. What is the annual demand to production ratio in this case. What does it indicate for the company?

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A:

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A: Following is the answer to the given question

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Q: How much is the carrying cost per unit? *

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