:A contractor buys cement in 25-pound bags. The contractor uses 1,440 bags a year. Ordering cost is $15 per order. Annual carrying cost is $75 per bag. 1-Compute the total cost of ordering and carrying cement. 2-If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost? Increase by

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A: Given,

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.