Total carrying cost and the restocking cost


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.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Total carrying cost and the restocking cost
Reference No:- TGS0891084

Expected delivery within 24 Hours