There are two shippers, we'll call them shippers A and shipper B.

Shipper A offers a three-day rate of $475 and a nine-day rate of $350.

Shipper B offers a four-day rate of $400 and a seven-day rate of $375.

We have annual holding costs that are 15% of the unit price. We are told that 500 boxes or 500 units will be shipped, and that each box has a price of $200. So which shipping alternative would you recommend?

Assume we have 365 days in a year.

Decide on the best choice--Shipper A or B? Make sure to show the steps for holding cost as well.