A.The Uptown Kiln is an importer of ceramics from overseas. It has
arranged to purchase a particular type of ceramic pottery from a
Korean artisan. The artisan makes the pottery in 120-unit batches and
will ship only that exact amount. The transportation and handling cost
of a shipment is $7,600 (not including the unit cost). The uptown Kiln
estimates its annual demand to be 900 units. What storage and
handling cost per unit does it need to achieve in order to minimize its
inventory cost?

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