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# carrying cost and restocking cost

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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

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?

a) 900 units
b) 1000 units
c) 100 units
d) 500 units
e) None of the above

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a) The carrying costs are the average inventory ...

#### Solution Summary

This solution shows how to solve for two multiple choice questions that involve finding the total carrying cost, the restocking cost, and the EQQ.

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