A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from a supplier in China. There is a monthly demand of 200 tires. The cost of placing an order is $200 and the holding cost is $24 per tire per year.

If the purchase price is $45 per tire and the economic order quantity is used, what is the total annual inventory cost? (please provide step-by-step explanation in determining answer)

Thank you!