Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases DVDs from Globe at $ 29 per DVD; DVDs are shipped in packages of 70 . Globe pays all incoming freight, and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality. Annual demand is 312 comma 000 DVDs at a rate of 6 comma 700 DVDs per week. DVD Mart earns 10 % on its cash investments. The purchaseminus order lead time is one week. The following cost data are available:

Relevant ordering costs per purchase order $ 116.50

Carrying costs per package per year:

Relevant insurance, materials handling, breakage, etc., per year $ 6.50

What are the annual relevant ordering costs?

The correct answer is $7,375. The answer I marked down was incorrect and I need to know how they got to the correct answer.