How much could the firm save annually in ordering and, Operation Management

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How much could the firm save annually in ordering and

A produce distributor uses 786 packing crates a month, which it purchases at a cost of $9 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $27. 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.)

Savings $ per year

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