Please show work

Problem 2. (Chapter 7: Transport Decisions). The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility for providing transportation. The traffic manager has three transportation service choices for delivery-rail, piggyback, and truck. He has compiled the following information: Transport Mode Transit Time, Days Rate, $/unit Shipment Size, Units Rail 16 24.00 10,000 Piggyback 10 40.00 7,000 Truck 6 80.00 5,000 Electronic Distributors purchases 50,000 units per year at a delivered contract price of $500 per unit. Inventory-carrying cost for both companies is 25 percent per year. Which mode of transportation should Wagner select? (hint: similar to the mode/service selection example in class (see Module2Ch07Part1.pdf or Module 2 Ch07 Part 1 Slide 1-7 Video) except that C'=500 at the warehouse and C=500-R for in-transit and plant inventory because $500 is the delivered price.)