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: 2670 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 $1.60 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 1360 purchase orders per year and her average pay has been $19400per year.

What is the total cost of one order in quantities equal to the EOQ?