A produce distributor uses 787 packing crates a month, which itpurchases at a cost of $10 each. The manager has assigned an annualcarrying cost of 36 percent of the purchase price per crate.Ordering costs are $28. Currently, the manager orders once a month.How much could the firm save annually in ordering and carryingcosts by using the EOQ? (Round intermediate calculations and finalanswer to 2 decimal places. Omit the "$" sign in yourresponse.)
Savings $______ per year
