Question: Please help, I will rate!! Thank you so much! You are shipping 200 diamonds to one customer located 2,000 miles away. The value of a

Please help, I will rate!! Thank you so much!

Please help, I will rate!! Thank you so much! You

You are shipping 200 diamonds to one customer located 2,000 miles away. The value of a diamond is $1,500. You can ship via air for $500 and the diamonds will arrive in two days, or you can ship via a specialty ground carrier for $250 and the diamonds will arrive in four days. You figure your inventory carrying charge is 25%. Your customer will immediately transfer funds to your bank account on receipt of the shipment. The use of the air carrier would save approximately how much in total cost? (Use 365 days as the number of days in a year = annual working days) (Hint: You need to calculate both in-transit inventory carrying cost and freight cost to compare the total cost of using a particular mode of transportation). $150 $160.96 $247.95 None of the above

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