Homework Help: Finance

Posted by Dantes on Wednesday, January 11, 2012 at 4:35pm.

Weight (lb) Cost (Overnight) Cost (3-Day)
2 $16.00 $2.90
3 $18.25 $3.50
4 $19.50 $3.98

The table above lists shipping rates for DSL (overnight delivery) versus “snail mail” (three-day delivery) for sending a package from Saskatoon Saskatchewan, to Montreal Quebec. Assume that inventory carrying cost is 25 percent per year of the product value and that there are 365 days per year. Calculate the break-even value of the product shipped in each case in order to use DSL instead of “snail mail”. Presume that you get paid as soon as the product arrives at its destination.

I need help... Thanks...

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