Problem:
Auto Parts sells 1,600 electric parts per week and then reorders another 1,600 parts.
Required:
If the relevant carrying cost per electric part is $4 and the fixed order cost is $650, 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
Note: Please explain comprehensively and give step by step solution.