A container of ball-bearings valued at $25,000,currently located in Houston,TX,needs to be delivered to the Morton,IL,plant.The standard shipment method takes two days.However,for an additional charge of $500,the container can be sent overnight to arrive one day later.The annual holding cost rate for this type of item has been estimated at 28%.Which option is more economical?

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The Answer of A container of ball-bearings valued at $25,000,currently located in Houston,TX,needs to be delivered to the Morton,IL,plant.The standard shipment method takes two days.However,for an additional charge of $500,the container can be sent overnight to arrive one day later.The annual holding cost rate for this type of item has been estimated at 28%.Which option is more economical?

A Container of Ball-Bearings Valued at $25,000,currently Located in Houston,TX,needs