RemZak Inc. is a distributor of DVDs. Win Mart is a local retail outlet which sells blank and recorded DVDs. Win Mart purchases DVDs from RemZak at $20 per DVD; DVDs are shipped in packages of 68. RemZak pays all incoming freight, and Win Mart does not inspect the DVDs due to RemZak's reputation for high quality. Annual demand is 320,731 DVDs. Win Mart earns 11% on its cash investments. The purchase-order lead time is one week. The following cost data are available:

Relevant ordering costs per purchase order $118

Carrying costs per package per year:

Relevant insurance, materials handling,

breakage, etc., per year $4

What is the relevant total cost?