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Q. A manager must make a decision on shipping. There are two shippers, A also B. Both offer a two-day rate: A for $500 also B for $525. In addition, A offers a three-day rate of $460 also a nine-day rate of $400; also B offers a four-day rate of $450 also a seven-day rate of $410. Annual holding costs are 35 percent of unit price. Three hundred boxes are to be shipped; also each box has a price of $140. Which shipping alternative would you recommend?
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