An Item with a Holding Cost of $500 Per Year

question 44

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) None of the choices are correct

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