JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost Co. It takes four total labor hours to process a PO.

The average number of SKUs on a PO is four. The average wage for people working in the purchasing department is $22 per hour plus employee benefits of $3 per hour. Fixed costs for the purchasing department are $300,000 per year assuming 2,000 hours per employee per year workweek. Given this information, what is a good estimate of Co per SKU to use in an EOQ model?