Firm save annually in ordering and carrying costs

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Reference no: EM131434426

A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35% of the purchase price per crate. Ordering costs are $28. Currently the manager orders once per month.

How much could the firm save annually in ordering and carrying costs by usuing the EOQ? (Round your intermediate calculations and final answers to 2 decimal places.)

Reference no: EM131434426

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