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3 - The Marcella Discount Store has annual demand of 1 0 , 5 0 0 metres of Super Shag carpet. The annual carrying cost

3- The Marcella Discount Store has annual demand of 10,500 metres of Super Shag
carpet. The annual carrying cost for a metre of this carpet is $1.5, and the ordering cost
is $325. The carpet manufacturer normally charges the store $8 per metre for the
carpet. However, the manufacturer has offered a discount price of $6 per metre if the
store will order 4500 metres.
What will be the total annual inventory cost for that order quantity? (Round to two
decimal places).
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