Total shipping and transit inventory cost of the shipment

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Reference no: EM132261532

Richard’s Sporting Goods needs to fill an online order for 146 hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of $60. The delivery will take five days and the order is paid on delivery (Richard’s doesn’t get paid until the sticks are received). The hockey sticks are valued at $40 for each stick and Richard’s uses a 20 percent annual inventory carrying charge. a. What will be the total shipping and transit inventory cost of the shipment? b-1. If the shipment could be delivered in only 2 days at a cost of $85, then what will be the total shipment cost? b-2. If the manager chose the above option, how much money would be saved or lost?

Reference no: EM132261532

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