Determine which shipping alternative would be most economical to ship 69 boxes of parts when each...
Determine which shipping alternative would be most economical to
ship 69 boxes of parts when each box has a price of $298 and
holding costs are 28 percent of price, given this shipping
information: overnight, $435, two-day, $295, six-day, $185.
(Round your intermediate calculations to 2 decimal
places.)
-
Overnight
-
Six-day
-
Two-day
Homework Answers
Holding cost for 69 boxes = 28% of 69*298 = 83.44 = 5757.36
Per day holding cost for 69 boxes = 5757.36/365 = 15.77
Total cost for Overnight shipping =435+15.77*1 = 450.77
Total cost for 2-day shipping= 295+2*15.77 = 326.54
Total cost for 6-day shipping= 185+6*15.77 = 279.62
Correct answer is Six-day as Six-day shipping incurs least cost
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Determine which shipping alternative would be most economical to
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