Question

A container of bolts, currently located in Houston, TX, needs to be delivered to a facility in Sioux Falls, SD. The standard ground shipment method takes three days. However, for an additional charge of $30.00, the container can be sent by two-day air. The holding cost per day for this type of item has been estimated at $21.09. Which shipping option is more economical?

Answer 1

Answer:

The ground shipment option is more economical

Explanation:

The costs of each option of shipment would be a good starting point in deciding which is more economical

Ground shipment costs:

Cost per day $21.09

number of days

cost=$21.09*3

       =$63.27

Air option

Number of days 2

cost per day $21.09

additional charge

cost=standard charge* days+additional charge

        =($21.09*2)+$30.00

       =$72.18

Above all the ground shipment option of $63.27 is more economical compared to the air option of $72.18