A sale of polarizing filters is held twice annually by a photographic products distributor.

The demand pattern for a particular size of filter for the past year is as follows:

It is anticipated that demand for the next year will follow this pattern; hence, these figures are being used as the “best estimates” of forthcoming sales. Demand will also continue in future years. The cost of these filters is $8.65, ordering costs are approximately $35, and the carrying cost is