Sum of the annual holding and ordering costs

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A company purchases wood for use in its products. The firm uses 760 pounds of wood per week and purchases wood for $1.75 per pound from a supplier. Each time the firm orders wood from the supplier, the firm must pay a $75 order processing charge. The firm's annual holding cost percentage is 31%.

Question: If the company orders 3,000 pounds of wood with each other, what is the sum of the annual holding and ordering costs?

Reference no: EM132722257

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