Fiber Technology, Inc., manufactures glass fibers used in the communications industry. The company's materials and parts manager is currently revising the inventory policy for XL-20, one of the chemicals used in the production process. The chemical is purchased in 10-pound canisters for $113 each. The firm uses 6,600 canisters per year. The controller estimates that it costs $168 to place and receive a typical order of XL-20. The annual cost of storing XL-20 is $5.80 per canister.

Make table showing the total annual cost of ordering and storing XL-20 for each of the following order quantities: 550, 600, and 1,100 canisters.

Order size

550 600 1100

Number of orders

Ordering cost

Average inventory

Holding costs

Total annual costs