Break-even product value, Calculate the break-even product

Break-even product value

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Reference no: EM13130476

Calculate the break-even product value of using Express Mail (overnight delivery) versus Parcel Post (three-day delivery) for sending a package from Peoria, Illinois to Memphis, Tennessee. The following table contains the appropriate costs. Assume that inventory carrying cost is 25 percent per year of the product value and that there are 365 days in a year.

Weight (lbs) cost (OND) cost (3 day)

2 $15.00 $2.87

3 17.25 3.34

4 19.4 3.78

5 21.55 4.1

6 25.4 4.39

7 26.45 4.67

8 27.6 4.91

9 28.65 5.16

Reference no: EM13130476

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