What is the current carrying cost, Accounting Basics

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What is the current carrying cost

Problem:

Redan Manufacturing uses 3,000 switch assemblies per week and then reorders another 3,000. The relevant carrying cost per switch assembly is $12.50, and the fixed order cost is $1,500.

Required:

Question 1: What is the current carrying cost?

Question 2: What is the order cost?

Question 3: Calculate the economic order quantity?

Note: Provide support for your underlying principle.

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Accounting Basics: What is the current carrying cost

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Accounting Basics: What is the current carrying cost

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