A particular raw material is available to a company at three different prices, depending on the size of the order:
Less than 100 pounds $20 per pound
100 pounds to 1,000 pounds $19 per pound
More than 1,000 pounds $18 per pound
The cost to place an order is $40. Annual demand is 3,000 units. Holding (or carrying) cost is 25 percent of the material price. Calculate the total cost for the 100 pounds to 1000 pounds pricing options.