Danny Steel, Inc., fabricates various products from two basic inputs, bar stock and sheet stock. Bar stock is used at a steady rate of 1,000 units per year arid costs $200 per bar. Sheet stock is used at a rate of 500 units per year and costs $150 per sheet. The company uses a 20 percent annual holding cost rate, and the fixed cost to place an order is $50, of which $10 is the cost of placing the purchase order and $40 is the fixed cost of a truck delivery. The variable (i.e., per unit charge) trucking cost is included in the unit price. The plant runs 365 days per year. (Chapter 2)

Using a week (seven days) as the base interval, round the order intervals (calculated with EOQ) for bar stock and sheet stock to the nearest power of 2 (=7, 14, 28 days...). If you charge the fixed trucking fee only once for deliveries that coincide, what is the annual cost?