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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 $502 and

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 $502 and B for $520. In addition, A offers a three-day rate of $470 and a nine-day rate of $401, and B offers a four-day rate of $455 and a seven-day rate of $436. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of $144. Which shipping alternative would you recommend?(Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "$" 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

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