Primary consideration is holding cost

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A manager at Stateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost $138 less than using two-day freight. The primary consideration is holding cost, which is $10 per unit a year. 2,280 items are to be shipped.

Which alternative would you recommend? (Round your intermediate calculations to 2 decimal places.)

Two-day freight

Five-day freight

Which of the two given is correct?

Reference no: EM13899235

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