Exercise 16.20 Sandhill Inc. uses 144 kilograms of material X per year. Material X costs $35.00 per kilogram. It costs $1.20 to place an order and $2.40 per kilogram to store material X. Currently, Sandhill is ordering material X in 19-kilogram batches. Is this the most economical order size? If not, what is the economic order quantity? How much will Sandhill save by using the EOQ? (Round answers to 2 decimal places, e.g. 125.74.)

1. Economic order quantity. kilo grams

2. Sandhill will save $ per year