Party Animals orders 10,400 stuffed tigers per year, at $10 per tiger, FOB destination. Party Animals earns 12% on its cash investments. The purchase order lead time is 3 weeks. The following data are available:

Estimated ordering costs per purchase order	$10
Estimated insurance, materials handling, breakage, and so on, per year	$3
Actual ordering costs per order	$15

What is the cost of the prediction error?

Question 8 options:

A)

$19.58

B)

$23.12

C)

1144.82

D)

1237.92