Question

Problem 15-3A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $536 and B for $525. In addition, A offers a three-day rate of $464 and a nine-day rate of $416, and B offers a four-day rate of $459 and a seven-day rate of $436. Annual holding costs are 37 percent of unit price. Three hundred and ninety boxes are to be shipped, and each box has a price of $154. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the “$” sign in your response.)
A BOption      Cost Option       Cost  2 days$   2 days$    3 days$   4 days$    9 days$   7 days$  
Ship three-day using AShip two-day using BShip four-day using BShip seven-day using BShip two-day using A

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