Sams auto shop services and repairs a particular brand of foreign automobile. sam uses oild filters through out the year. The shop operates 52weeks per year and weekly demand is 160 filters. sam estimates that is costs $20 to place an order and his annual holding cost rate is $2 per oil filter. Currently sam orders in quantities of 640 filters. calculate the total annual costs with sams currently ordering policy.

what is the total annual cost?