Problem 15-3

A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $512 and B for $521. In addition, A offers a three-day rate of $478 and a nine-day rate of $401, and B offers a four-day rate of $460 and a seven-day rate of $414. Annual holding costs are 40 percent of unit price. Three hundred and seventy boxes are to be shipped, and each box has a price of $150. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "$" sign in your response.)

A			B
Option	Cost		Option	Cost
2 days	$		2 days	$
3 days	$		4 days	$
9 days	$		7 days	$

Ship two-day using A

Ship three-day using A

Ship two-day using B

Ship four-day using B

Ship seven-day using B