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LAMA Creations creates sweaters using the wool of the Llama. The wool used in the manufacturing process is ordered by the bundle. LAMA requires 1,200 bundles of Llama wool per year and places orders of 100 bundles at a time. The cost of ordering is $80.00 per order and the carrying cost per bundle is $3.50. LAMA Creations' ordering cost will change to $90.00 per order if the order quantity is increased from 100 bundles to 200 bundles. What order quantity should be placed in this case?
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The cost of borrowed funds.
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The complete financial loss associated with an investment, project, or business activity, where no returns are recovered.
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The negative financial result from business activities when costs exceed revenues.
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