A fabricator uses about 10,500 pounds of steel each week. The fabricator estimates their holding cost to be 26% per year. A supplier has offered the fabricator two options. Option 1 is to purchase steel in lots of 35,000 pounds (truckload). The price per pound for option 1 is $0.24 per pound. Option 2 is to have steel delivered by rail. The cost per pound for option 2 would be $0.21 per pound. Deliveries by rail will include 150,000 pounds of steel. In either case, the supplier will charge the firm a fixed fee of $600 per delivery.

What is the total annual (52 week) holding and ordering cost of option 2? Note: Round your answer to 2 decimal places.