Problem $15-3($Static$)$

A manager must make a decision on shipping. There are two shippers: A and B$.$ Both offer a two$-$day rate: A for $$500,$ and B for $$525.$ In addition, A offers a three$-$day rate of $$460$ and a nine$-$day rate of $$400,$ and B offers a four$-$day rate of $$450$ and a seven$-$day rate of $$410.$ Annual holding costs are $35$ percent of unit price. Three hundred boxes are to be shipped, and each box has a price of $$140.$ Which shipping alternative would you recommend?

Note: Round your intermediate calculations to $3$ decimal places and final answers to $2$ decimal places.

multiple choice

Ship two$-$day using A

Ship three$-$day using A

Ship nine$-$day using A

Ship two$-$day using B

Ship four$-$day using B

Ship seven$-$day using B