samâs auto shop services and repairs a particular brand of foreign automobile. sam uses oil filters throughout the year. the shop operates fifty-two weeks per year and weekly demand is 150 filters. sam estimates that it costs $20 to place an order and his annual holding cost rate is $3 per oil filter. currently, sam orders in quantities of 650 filters. calculate the total annual costs associated with samâs current ordering policy
total annual costs = $

The answer is $23640.

Step-by-step explanation:

The shop operates fifty-two weeks per year and weekly demand is 150 filters.

So, for 52 weeks the number of filters needed are =

Sam estimates that it costs $20 to place an order and his annual holding cost rate is $3 per oil filter.

He orders in quantities of 650 filters. Means for the year he will order quantities

Total annual costs = ordering cost + holding cost

Ordering cost for 12 batches = dollars

Annual holding cost = dollars

Total cost will be = dollars

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