How much money in terms of transportation cost

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Reference no: EM132261842

1. The following information will be used for this question AND the next question.

A company will receive an order for each of the next 20 days. They have the option to hold orders for multiple days before sending out a shipment, meaning that they will not ship each day resulting in 20 shipments. They are considering shipping:

1. once every 4 days

2. once every 5 days

3. once every 10 days

Their shipping company charges $1 per unit to ship items plus a fixed fee of $20,000 per shipment.

How much money, in terms of transportation cost, will the company save by shipping every 5 days instead of every 4 days?

A. unable to determine

B. $20,000

C. $30,000

D. $10,000

2. For this question, refer to the text from the previous question (regarding shipping every 4, 5, or 10 days).

How much money, in terms of transportation cost, will the company save by shipping every 10 days instead of every 5 days?

A. $40,000

B. $60,000

C. $20,000

D. unable to determine

Reference no: EM132261842

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