A shipment worth $109,500 has to be delivered from a supplier to its customer. There are 2 options: Option 1: use the rail system which takes 30 days at a cost of $4,000. Option 2: use a trucking company which take 20 days at a cost of $5,000. Assume 365 days per year. What is the cost difference between the 2 options?
Option 2 is $2,000 more expensive than Option 1
Option 1 is $1,000 cheaper than Option 2
Option 1 is $1,000 more expensive than Option 2
Option 2 is $2,000 cheaper than Option 1
Shipment worth | 109500 |
Option 1: Rail system | |
30 days at a cost of 4000 | |
Option 2: trucking company | |
20 days at a cost of 5000 | |
365 days a year |
Normalizing Option 1 cost for 20 days gives
30/20 X 4000 = 6000
Hence option 1 is 6000-5000 = 1000 more expensive than option 2
A shipment worth $109,500 has to be delivered from a supplier to its customer. There are...
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