Consumers usually pay less than the total cost of medical treatment because the federal government pays for most medical procedures. a third party, usually an insurance company, often pays most of the bill. a third party, usually an employer, often pays most of the bill. competition forces doctors and hospitals to charge prices that do not cover their costs.

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?