QUESTION #$2$: On a second page identify the cost of each activity and the total delivered cost PER UNIT for A$,$ B$,$ and Citems for each proposed channel. "Our transportation rates offer some interesting opportunities that shape channels," continued Stephanie, "Truckload $($TL$)$ shipping is always a much lower cost per pound than LTL$/$Small Package delivery such as FedEx or UPS. It is the economic principle of packaging in larger lots and shipping to a single retail store location compared to many small packages shipped to many locations. After the analysis we will be able to better determine the leverage points. "Offering additional channels should increase our sales," Stephanie continued. "and with it our annual demand with our suppliers. This, in turn, should reduce our COGS on a per unit basis."