Question: a . Determine which shipping alternative is best if the annual holding cost of an item is 2 5 percent of its unit price, and

a. Determine which shipping alternative is best if the annual holding cost of an item is 25 percent of its unit price, and a single unit with a price of $6,000 is to be delivered, either by two-day delivery at a cost of $400 or by five-day delivery at a cost of $350.
b. At what unit price would two-day delivery be less costly?

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