Question: Ellis seafood is determining which distribution option it should use next year for delivery to its commercial clients. They have an option to lease their
Ellis seafood is determining which distribution option it should use next year for delivery to its commercial clients. They have an option to lease their own truck at a fixed cost of $K per year includes lease, insurance, and maintenance Variable costs per delivery would be $ per order. Currently, they are using a common carrier to deliver their orders in town. The costs to maintain the contract are estimated to be $vendor qualification quality assurance but the variable cost per shipment is $
If the volume is estimated to be shipments, which option should Ellis choose?
Group of answer choices
lease
common carrier
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