Petrov plc sells 10,000 tonnes of sand each year and demand is constant over time.

The purchase cost of each tonne is £15 and the cost of placing and handling an order is estimated to be £32. The cost of holding one tonne of sand for one year is estimated to be £4. The business uses the EOQ model to determine the appropriate order quantity and holds no buffer inventories.

Calculate the total annual cost of trading in this product.