1. Post Card Depot, an large retailer of post cards, orders 6,537,772 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 16 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.15 per post card per year. The ordering cost is $466 per order.

What is the annual carrying costs of post card inventory (round the answer to two decimal places)?

2. Cheeseburger and Taco Company purchases 15,200 boxes of cheese each year. It costs $23 to place and ship each order and $2.53 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year?