For a plastic injection molding machine, the production policy is as follows: The machine is set up to produce a particular molded part (Item J) once every 4 weeks, and the production rate is three times the demand rate for these parts. After making a batch of Item J, other products are made on the same machine. The demand for Item J is 1,500 per day with very little uncertainty. The fixed cost is $950 per setup. The unit cost of a part is $4.50 per unit and holding costs are assessed at 14% per part per year. Assume 5 days in a week and 250 working days in a year. Compute the annual costs of ordering and holding inventory for standard gears.