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BZoom sells toy bricks that can be used to construct a wide range of machines, animals, buildings, and so on. It purchases a red dye
BZoom sells toy bricks that can be used to construct a wide range of machines, animals, buildings, and so on. It purchases a red dye powder to include in the resin it uses to make the bricks. The powder is purchased from a supplier for $1.30 per kg. At one production facility, BZoom requires 400 kg of this red dye powder each week. Bzoom's annual holding costs are 30 percent and the fixed cost associated with each order to the supplier is $50.
If BZoom orders 4000 kg at a time, what would be the sum of the annual ordering and holding cost?
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