A company has total annual activity costs in the activity group procurement of kr 2...

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Finance

A company has total annual activity costs in the activity group procurement of kr 2 600 000, of which 80.0% are fixed and 20.0% are considered being variable. The budgeted activity level reflects the handling of 640 purchase orders per year, but this is only 70% of the available capacity. What is the annual cost of the excess capacity?

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