A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $536 and B for $525. In addition, A offers a three-day rate of $464 and a nine-day rate of $416, and B offers a four-day rate of $459 and a seven-day rate of $436. Annual holding costs are 37 percent of unit price. Three hundred and ninety boxes are to be shipped, and each box has a price of $154. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
A B
Option Cost Option Cost
2 days $ 2 days $
3 days $ 4 days $
9 days $ 7 days $
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Ship three-day using A
Ship two-day using B
Ship four-day using B
Ship seven-day using B
Ship two-day using A