Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180. (round your intermediate calculations to 2 decimal places.) overnight two-day six-day

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Ajax

18 December, 17:58

Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180. (round your intermediate calculations to 2 decimal places.) overnight two-day six-day

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Kaleb Adams · Answer 1

6 days

Explanation:

Overnight cost

Shipping fee = $300

Holding cost - ($200 * 80) * 30% = $4800

Two days

Shipping fee = $260

Saving = 300 - 260 = $40

Holding cost for an extra day

((200*80) * 30%) * 1 / 365 = $13.15

Savings = $26.85

Six day

Shipping fee = $180

Saving = $300 - $180 = $120

Holding cost for extra five days

((200*80) * 30%) * 5/365 = $65.75

Savings = $120-$65.75

$54.25