A Red Deer based manager must make a decision on delivery alternatives for transporting a product from its supplier in Toronto, Ontario to the retail outlet located in Calgary, Alberta $.$ There are two carriers: Wave Movers and Reed Transport, available that can physically move the material in question.

$350$ boxes are to be delivered and the freight cost for the whole lot for each option is given below. Annual holding cost is $25\%$ of unit cost, and each box has a cost of $$240.$ Assume $365$ days per year.

Wave Movers Reed Transport

Option A Freight Cost $($$$)$ Options B Freight Cost $($$$)$

$3$ days

$$400\mathrm{.}00$

$5$ days $$475\mathrm{.}00$

Question $1(1$ point$)$

Determine only the gross annual holding cost

Question $1$ options:

$$11,475$

$$16,800$

$$15,000$

$$14,400$