Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,800 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $14 per unit of average inventory. Every time an order is placed for more item X, it costs $18. What is the annual cost for ordering item X?

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,800 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $14 per unit of average inventory. Every time an order is placed for more item X, it costs $18. What is the annual cost for ordering item X?