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Downey Disks is experiencing some inventory control problems. The manager currently orders four times each year...

Downey Disks is experiencing some inventory control problems. The manager currently orders four times each year with the annual purchase of the inventory costing $200,000. Each inventory item costs $5, ordering costs are $125, and each item costs $2.50 to carry. What is the opportunity cost of the present ordering system as compared to an EOQ ordering system?

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