Distance from a DC to two customers is 130 and 70 miles, respectively.

Demands from each are 150 and 260 cases, respectively. Find the best mode of delivery from among the three choices:

a. Contract Carrier: DHL charges $5.80 per case. All customers are in the same delivery zone and so the price is the same for each.

b. LTL: The rate is $2.45 per mile traveled plus a handling fee of

$2.50 per case.

c. FTL: The rate is $1.40 per mile traveled plus a handling fee of

$400. The handling fee is paid regardless of the number of cases.

The capacity of a truck is 200 cases.