Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180.

Answer 1

I am wondering of your holding costs are per day or not dependent on time. It makes a big difference.

Assuming holding costs are independent of time during shipping. on a per box price..
overnight: 300
two day: 260+60
six day: 180+60
which indicates six day shipping

Assuming holding costs are per day costs
overnite: 300
two day:260+120
six day:180+360
which indicates overnite.

I hope I answered your question.

Answer 2

Thank you very much
i think its more likely to be dependent on time, but aren't we supposed to consider $60 x 80 boxes??