Homework Name MGMT 370 Chapter 15 1. A truck manufacturer purchases engines from ABC Productions. An engine is needed on a regular basis for use in assembly of the trucks. ABC Productions has a choice of two shipping alternatives as follows: The two-day freight at a cost of $400 The five-day freight at a cost of $350. Determine which shipping alternative is best for ABC Productions when the annual holding costs of an engine is 25% of its unit price, and a single engine has a price of $6,000. (A) Identify the Annual earning potential of one engine (B) State the Formula you will use Here: (C) Calculate Here: Two-Day Option: Five-Day Option: (D) Make a Decision Here & explain why: