A fresh produce distributor uses 870 non-returnable packing crates a month, which it purchases at a cost of $5 each. The manager has assigned an annual holding cost of 25 percent of the purchase price per crate. Ordering cost is $32 per order. Currently the manager orders 870 crates at a time. How much could the firm save annually in ordering and holding costs by using the EOQ? (Round the final answer to 2 decimal places.) Annual savings $