A company produces and markets various brands of chocolates having annual demand of 80 000 kg. The following information is available in respect of coco powder which is the main component of the chocolate:

Cost per kg is N$600

Purchase and storage costs are as follows:

• Annual variable cost of the procurement office is N$ 60 000 The total number of orders (of all products) is estimated at 12.
• Storage and handling cost is N$20 per kg per month.
• Other carrying cost is estimated at N$5 per kg per month.

Calculate the total inventory cost