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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 :

Answer:

The answer is "2 days".

Explanation:

[tex]\to Units= 175 \\\\\to \text{Unit Price}= \$ 200 \\\\\to \text{Total Ship} =\$ 35000\\\\\to \text{complete shipping costs} = \$ 10500[/tex]

The average cost of alternatives is:

[tex]\to Overnight \ 340 =10500 \times (\frac{1}{365})=28.76+340= 368.726[/tex]

[tex]\to 2-day \ 260 =10500 \times(\frac{2}{365})=57.53+260=317.53[/tex]  the lower total cost

[tex]\to 6-day \ 180 =10500 \times(\frac{6}{365})=172.60+180 =352.6[/tex]

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