PLEASE SHOW STEP BY STEP WHEN DOING CALCULATION

John who is the supply chain analyst for the Exatar manufacturing company must choose between two shipping alternatives to receive a part from their supplier: a two-day freight and a six-day freight. The freight (shipping) cost per unit is $4 for the six-day freight and $8 for the two-day freight. The purchasing cost is $150. In addition, the annual holding cost is 20% of the items value and 2500 items are to be shipped in a year. The company will need to keep 30 units as the safety stock at all times if they go with the two-day freight, but this amount will be 60 units if they choose the six-day freight. What is the annual safety stock holding costs for the six-day shipping? [ Assume 250 days in a year, and the shipping cost is charged when the items arrive at the destination.] $600 $948 $1800 $1848 None of the above