# Question: A produce distributor uses 800 packing crates a month which

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 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 carrying costs by using the EOQ?

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