Use only the following information to establish what is better financially for Apple - shipping the iPhone 12 by plane or by ship from China to the United States. SHOW YOUR WORK and base them on a single container only. Do NOT account for diverse storage volumes of cargo ships and cargo planes into account.

 

·      44,000 iPhone 12s can fit into a 40-foot container

·      The cost for shipping the container from China to the US by Cargo Ship is $3,000 DDP

·      The cost for shipping a container from China to the US by plane is $22,500 DDP

·      It takes a cargo ship 30 days to deliver a container from China to the US

·      It takes a cargo plane 5 days to deliver a container from China to the US

·      It costs Apple $175 per phone to manufacture the iPhone 12

·      Apple's cost of capital is 5% per year

Answer rating: 100% (QA)

To determine whether shipping the iPhone 12 by plane or by ship is better financially for Apple we n... View the full answer