Question

Determine which shipping alternative would be most economical to ship 175 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $340, two-day, $260, six-day, $180. (Round your intermediate calculations to 2 decimal places.)

Answer 1

The answer is "2 days".

Step-by-step explanation:

`\to Units= 175 \\\\\to \text{Unit Price}= \$ 200 \\\\\to \text{Total Ship} =\$ 35000\\\\\to \text{complete shipping costs} = \$ 10500`

The average cost of alternatives is:

`\to Overnight \ 340 =10500 * ((1)/(365))=28.76+340= 368.726`

`\to 2-day \ 260 =10500 *((2)/(365))=57.53+260=317.53` the lower total cost

`\to 6-day \ 180 =10500 *((6)/(365))=172.60+180 =352.6`