Under the assumptions of newsvendor model for an item, when the selling price is $50, the purchase price is $20, the salvage value is $10, and the cost of loss of goodwill is $15 (all the costs are per item), the cost of underage would be a) $40. b) $45. c) $30. d) $10.
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Under the assumptions of newsvendor model for an item, when the selling price is $50, the purchase price is $20, the salvage value is $10, and the cost of loss of goodwill is $15 (all the costs are per item), the cost of underage would be
a) $40.
b) $45.
c) $30.
d) $10.
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