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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?

$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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