(10/365)(3)(2000) = ?
I'm sure you can take it from here.
Be sure to show the calculations that helped in your decision-making.
A manager at Strateline Manufacturing must chose between two shopping Alternatives; Two-day freight and five-day. Using five-day freight would cost $135 less than using two-day freight. The primary consideration is holding cost, which is $10 per unit a year. 2000 items are to be shipped. Which alternative would you recommend? Explain.
2 answers
$10*2000=$20000*(3/365)
=$164
=$164