A produce distributor uses 780 packing crates a month, which it purchases at a cost of $8 each. The manager has assigned an annual carrying cost of 40 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.
How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)
Savings $ per year