Question: Redan Manufacturing uses 2,000 switch assemblies per week and then reorders another 2,000. The relevant carrying cost per switch assembly is $7.50, and the fixed

Redan Manufacturing uses 2,000 switch assemblies per week and then reorders another 2,000. The relevant carrying cost per switch assembly is $7.50, and the fixed order cost is $1,000.

What is the current carrying cost?

Carrying cost

What is the order cost?

Order cost

Calculate the economic order quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

EOQ

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