A furniture manufacturer uses 750 gallons of glue per month, which it buys at a price of $10 per gallon. Carrying cost per gallon per year is 35% of the per-gallon purchase price, and it costs $28 to place an order for glue. Right now the manufacturer places an order for glue every month. |
If the manufacturer used the EOQ, how much would it save each year? (Round intermediate calculations and final answer to 2 decimal places) |
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