# 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

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

https://brainmass.com/business/finance/calculating-carrying-cost-restocking-cost-393049

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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.