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The disposable package had been preferable to the returnable one if the corrugated containers could have been stacked four high in the trailer. The computation
The disposable package had been preferable to the returnable one if the corrugated containers could have been stacked four high in the trailer. The computation for return on investment would have been calculated as follows: Spendable bundle: Expendable bundle cost is $5,000. Price of shipping: $1000 $6000 is the total price. Return on investment is equal to $6,000 / $5,000. = 1.2 Returnable container: $700 is the cost of the returnable package. Price of shipping: $1000 $8000 is the total price. ROI is equal to $8,000 divided by $7,000 = 1.14 For the disposable package and the returnable package, respectively, the return on investments calculation could have been 1.2 and 1.14. Therefore, the disposable package would have been the preferable choice because it would have provided a better investment return
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