What is their total annual ordering costs


Question: A grocery store sells 3600 gallon jugs of whole milk each year. The cost to place an order is $30.80 and the annual unit carrying cost per jug is $9.51. They are currently using a fixed quantity inventory system and are placing orders with quantity of 150 jugs. Using their current order quantity, what is their total annual ordering costs? Round answer to 2 decimal places. Note that some of the given information is not needed to answer this question.

 

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