Macon Bacon (MB) is a distributor of bacon products. The weekly demand for a 15-lb slab of bacon is normally distributed with mean 600 units per week and standard deviation 63 units per week. It takes 9 days to receive an order delivery (assume 7 days per week) and MB reviews its inventory every 4 days. MB would like to maintain a cycle service level of 95%. MB purchases the slabs from a supplier for $65 per unit. Annual holding cost is 25% of the purchase cost per unit.

a) Compute the annual holding cost for carrying the safety stock. Answer: $_____