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A manufacturer purchases steel for use in its products. The firm uses 100 tons of steel per week and purchases steel for $100 per ton
A manufacturer purchases steel for use in its products. The firm uses 100 tons of steel per week and purchases steel for $100 per ton from a supplier. Each time the firm orders steel from the supplier, the firm must pay an order processing charge of $90. The firm's annual holding cost percentage is 31%.
If the manufacturer orders 500 tons of steel with each order, what is the sum of the annual holding and ordering costs?
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