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Assume it is May 1. You have 14,000 units in stock for an item that you sell for $52.97 with a 51% margin, excluding shipping.
Assume it is May 1. You have 14,000 units in stock for an item that you sell for $52.97 with a 51% margin, excluding shipping. You sold 12,000 units in March, and in April that run rate has increased by 250%. You are considering two shipping options to restock inventory, and the shipment is ready today. A 7-day air freight shipment with 42,000 units will cost $125,000 and a 25-day ocean shipment for the same number of units will cost $40,000. Which shipment should you choose and why? Show your work.
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