Corporate Finance Quiz
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WORKING CAPITAL MANAGEMENT
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Two products have identical annual demand (10,000 units) and carrying costs ($5 per unit per year). Product A has an ordering cost of $80 per order, while Product B has an ordering cost of $180 per order. If both products are currently ordered using their respective EOQ quantities, what is the ratio of Product B's total annual ordering and carrying costs to Product A's total annual ordering and carrying costs?
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