Despite the growing popularity of the company’s new lec 90, profits have been declining steadily. management is beginning to believe that there may be a problem with the company’s costing system. direct material and direct labor costs per unit are as follows: lec 40 lec 90 direct materials $ 20.00 $ 52.00 direct labor (0.60 hours and 0.80 hours @ $15.00 per hour) $ 9.00 $ 12.00

An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?