BUSI 411 Connect Homework Chapter 15 solutions complete answers
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Question 1
A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost $137 less than using two-day freight. The primary consideration is holding cost, which is $10 per unit a year. 2,100 items are to be shipped.
Which alternative would you recommend? (Do not round your intermediate calculations.)
Question 2
Determine which shipping alternative would be most economical to ship 65 boxes of parts when each box has a price of $290 and holding costs are 28 percent of price, given this shipping information: overnight, $415, two-day, $275, six-day, $205. (Round your intermediate calculations to 2 decimal places.)
Question 3
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $538 and B for $529. In addition, A offers a three-day rate of $472 and a nine-day rate of $406, and B offers a four-day rate of $455 and a seven-day rate of $428. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of $156. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "$" sign in your response.)
