You are a retailer selling a certain item. Demand is for 486 per year. The supplier charges $9.10 per unit plus a processing fee of $7.20 per order. Each order costs the retailer $14.50 in adminstrative overheads. Shipping costs $90.80 per cubic metre plus $8.90 per order, and 1 unit can be packed per cubic metre. Insurance costs are $4.10 per unit plus $2.20 per order in transit (i.e., during shipping), plus 0.1% of stock value per month during storage. (Stock value includes all per-unit expenses incurred in acquiring the stock.) The warehousing cost per unit is $1.04 per month. The effective interest rate on capital tied up in stock is 3.8%. No shortages should occur.

1.what is the annual holding cost for each dollar tied up in inventory?