Finance
posted by Dantes .
Weight (lb) Cost (Overnight) Cost (3Day)
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” (threeday 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 breakeven 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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