Elite Corp. builds a manufacturing plant in a foreign trade zone. Materials costing $2,000,000 each month are imported. Duty is assessed at 6% of cost. About 14% of the materials are defective and disposed of as waste. What is the savings to the company of locating inside a foreign trade zone?

$25,600 per month

$16,800 per month

$12,400 per month

$22,200 per month