Carrying cost and restocking cost


Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $750, what is the total carrying cost and the restocking cost, respectively?

a) $2,400 and $39,900

b) $3,200 and $33,800

c) $2,400 and $39,000

d) $3,400 and $30,000

e) None of the above

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Accounting Basics: Carrying cost and restocking cost
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