Party Animals orders 5,200 stuffed giraffes per year, at $6 per tiger, FOB destination. Party Animals earns 3% on its cash investments. The purchase order lead time is 4 weeks. The following data are available:

Estimated ordering costs per purchase order- $35

Estimated insurance, materialshandling, breakage, and so on, per year-$2

Actual ordering costs per order-$55

Required:

What is the cost of the prediction error?