The North Slope clothing store chain estimates that the annual demand for its most popular cotton sweater has a mean of approximately 26,000 units each year with a standard deviation of 2,000. North Slope buys these sweaters from a manufacturer located in Canada. The fixed cost of placing an order for this particular product is $200. North Slope pays $10 for each cotton sweater. The company's cost of capital is 11%, and the cost of storing a sweater for one year is $1.10. While North Slope prefers not to backlog customer demand, management of the company believes that it can afford to run out of sweaters on an occasional basis. The company estimates that the shortage cost per sweater per year is about $20. You may assume that lead time is 2 weeks. Find the optimal (r, Q) policy by minimizing North Slope's expected annual cost, and use it to answer the following questions: North Slope should place an order for sweaters (round to nearest whole number), whenever inventory drops to a level at or below sweaters. The expected annual cost of this policy is $ ?