Dynamic Doors makes doorstops. They use 350 sheets of rubber per month which they put into a press to form the door stops. The rubber sheets are purchased at $1.80 per sheet and the annual cost to store a sheet is estimated to be 20% of the purchase price. The ordering cost is $20 per order and the store has been placing orders for 2000 rubber sheets when resupplying.
a. Determine the EOQ, rounded to the nearest sheet.
b. How much money will be saved if the manufacturer orders the EOQ amount instead of 2000?