Computers company assembles laptop computers from generic components. It purchases its colour monitors from a manufacturer in China with a lead time of 10 days. Daily demand for monitors is normally distributed with a mean of 50 monitors and a standard deviation of 10 monitors. The company has determined that the ordering cost is $300 per order, the annual holding cost is $20 per monitor, and the stockout cost is $400 per lost sale. Currently the company accepts a 5% risk of stockout. Assume 350 days per year.

Q: What is the annual cost of lost sales?