A produce distributor uses 776 packing crates a month, which it purchases at a cost of $9 each. The manager has assigned an annual carrying cost of 36 percent of the purchase price per crate. Ordering costs are $31. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places.Omit the “$” sign in your response.) Savings $ per year
Expert Answer
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