Your family's house painting business has decided to try this "EOQ thing" you just learned in SCMS 3510. So you open the financials and note the following information:

Three-year average paint consumption: 2090 gallons per year

You use a small warehouse to hold your equipment and paint. From your cost accounting class, you estimate that your holding cost per gallon of paint is $1.65 per year.

Buying the materials needed requires more time than you thought. The part-time person whose only function is to do all of your buying says that she processes 1410 purchase orders per year and her average pay has been $14600 per year.

What are the total annual costs if you order in quantities equal to the EOQ? (Your answer should have two decimal places)

Your Answer: