A Swiss manufacturer of grinding machines must decide how to transport a finished grinding machine from Zurich to Hong Kong. The agreeddelivery date is one week away, and the contractually agreed penalty for delayed delivery is CHF 1,000 per week. The customer will pay for themachine on delivery.

You also have the following information to help you decide whether to have the machine transported to Hong Kong by plane or ship:

- Airfreight rate from Zurich to Hong Kong = CHF 2.00/kg - Transit time by air = 1 week - Ocean freight rate from Zurich to Hong Kong = CHF 0.50/kg - Transit time by sea = 4 weeks - Value of the grinding machine = CHF 1,000,000 (one million Swiss francs) - Weight of the grinding machine = 1,500 kg - Interest on capital = 0.1% per week (5% per year)

Which other costs must be considered when calculating transport costs in the above example?

a. Costs for commissioning the machine at the customer's plant. b. Storage costs in Switzerland. c. Missed sales due to inability to deliver. d. Warranty provisions. e. Insurance costs, dependent on transport duration.