In Problem S11-10, Systems Unlimited wants to meet demand more effectively at the four universities it supplies. It is considering two alternatives:
(1) Expand its warehouse at Richmond to a capacity of 600 at a cost equivalent to an additional $6 in handling and shipping per unit;
(2) Purchase a new warehouse in Charlotte that can supply 300 units with shipping costs of $19 to Tech, $26 to A&M, $22 to State, and $16 to Central.
Which alternative should management select based solely on transportation costs (i.e., no capital costs)?