3.

Consider a quantity discount problem where the yearly demand for the product is 1,065 units, the ordering cost is $30, the holding cost is 49% of the purchase price, and the price depends on the quantity as follows:

Quantity Ordered Purchase Price $

0 to 199 units $69 each

200 to 4,999 units $45 each

5,000 or more $38 each

Assume the adjusted EOQ is 619 for the quantity range, 200 to 4,999 units, calculate the annual total cost for ordering this quantity including the cost of purchasing the product. (Round to two decimal places)