A consumer electronics retailer purchases digital cameras from a distributor for $50 each, in addition to an administrative and logistics cost of $100 per order. Demand for the product is assumed constant over time, with a demand rate of 500 units per year. The annualized cost to store a unit of inventory is computed as $40 / year-unit, reflecting that the product is fragile and the opportunity cost of shelf space within the retail store is high. The economic order quantity for this product is 50 units.

Suppose that instead of the order quantity recommendation made above, the retailer decides to set the order quantity at 100 units. The store would need to order from the distributor 5 times a year under this plan.

What would be the annual total cost (i.e., holding and ordering costs) if the order quantity was set at 100 units?