Question

A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $526 and B for $532. In addition, A offers a three-day rate of $470 and a nine-day rate of $411, and B offers a four-day rate of $459 and a seven-day rate of $412. Annual holding costs are 34 percent of unit price. Three hundred and fourty boxes are to be shipped, and each box has a price of $148. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "$" sign in your response.) A B Option Cost Option Cost 2 days $ 2 days $ 3 days $ 4 days $ 9 days $ 7 days $ a. Ship three-day using A b. Ship two-day using B c. Ship four-day using B d. Ship seven-day using B e. Ship two-day using A

Answer 1

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.