A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $514, and B for $527. In addition, A offers a three-day rate of $472 and a nine-day rate of $407, and B offers a four-day rate of $458 and a seven-day rate of $424. Annual holding costs are 31 percent of unit price. Three hundred and sixty boxes are to be shipped, and each box has a price of $146. Which shipping alternative would you recommend

Ship two-day using A ship

Explanation:

It is given that :

Total number of boxes to be shipped = 360 boxes

Cost of annual holding  = 31%

                                       = 0.31

Price for each box = $ 146

∴ Cost of total boxes = 146 x 360

                                    = $52,560

∴ Total holding cost = 0.31 x 52560

                                  = $ 16,293.60

Now the holding cost for one day = days

                                                       = 44.640  per day

For shipper A

Shipping cost + days x holding cost

Cost for 2 days = 514 + 2 x 44.640 = $ 603.28

Cost for 3 days = 472 + 3 x 44.640 = $ 605.92

Cost for 9 days = 407 + 9 x 44.640 = $ 808.76

Similarly for shipper B

Shipping cost + days x holding cost

Cost for 2 days = 527 + 2 x 44.640 = $ 616.28

Cost for 4 days = 458 + 4 x 44.640 = $ 636.56

Cost for 7 days = 424 + 7 x 44.640 = $ 736.48

Thus from above we can conclude that choosing Ship A for two days is the correct option.

b. Give the check to the owner of the property.

Explanation:

Pat is a broker who has received an offer for a listing along with check. He can give the check to an escrow agent or deposit the check into pat's brokerage account. he cannot give check directly to the owner of the property.