The sales of a popular mouthwash at Merkle Pharmacies over the past 6 months have averaged 2,200 cases per month resulting in 26,400 cases per month, which is the current order quantity. Merkles cost is $14.00 per case. The company estimates its cost of capital to be 10 percent. Insurance, taxes, breakage, handling, and pilferage are estimated to be approximately 5 percent of item cost. Thus, the annual inventory-holding costs are estimated to be 15 percent of item cost. The cost of placing an order is estimated to be $33.00 per order regardless of the quantity requested in the order. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

5. What are the total cost savings in absolute terms caused by using the minimum-cost economic order quantity instead of the current purchasing policy of Q = 2,200? Use the rounded EOQ value in your calculations. Round your answer to the nearest cent.