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Problem 4: Mode Mix Price per unit- $150 Net cost per unit- $100 Inventory carrying cost 30% In-transit inventory carrying cost- 18% Motor carrier transportation cost- 0.09% of inventory value Ocean transportation cost 0.00938% of inventory value Rail transportation cost- 0.01199% of inventory value Cost of capital 16% ABC company owns the inventory up to delivery at customer DC For this problem, make sure you adjust the annual carrying cost rates to daily rates