Using the following data:

1) total inventory carrying charge

2) the per pound inventory carrying charge for inventory that is used during normal production:

-144,000 pounds of a raw material used each year

-Raw material costs $1.75 per pound

-Demand occurs at a steady rate throughout the year

-Inventory is received at the start of each month and used throughout the month until it reaches zero at the end of the month

-Inventory carrying charge is 24% annually