An Item with a Holding Cost of $500 Per Year

question 80

Multiple Choice

An item with a holding cost of $500 per year can be shipped by air in 1 day,costing $100,or by ground in 4 days,costing $25.Assuming the holding costs of $500 per year are based on an operational year of 365 days,which is cheaper and by how much?

• A)Ground is cheaper by $75.00
• B)Ground is cheaper by $70.89
• C)Ground is cheaper by $72.26
• D)Ground and air have the same total cost
• E)Air is cheaper by $25.

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Definitions:

Neural Messages

Electrical and chemical signals transmitted by neurons in the nervous system to communicate information.

Lens

A curved piece of glass or other transparent material that focuses or disperses light rays, used in glasses and cameras.

Fovea

The central focal point in the retina of the eye, around which the cones are densely packed for high visual acuity.

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.