Compute total carrying cost and the 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?

$2,400 and $39,900
$3,200 and $33,800
$2,400 and $39,000
$3,400 and $30,000
None of the above

Company ABC has expected sales of 75,000 units this year, an ordering cost of $8 per order and carrying costs of $1.20 per unit. What is the EOQ?

900 units
1000 units
100 units
500 units
None of the above

 

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Finance Basics: Compute total carrying cost and the restocking cost
Reference No:- TGS029178

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