A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $540, and B for $523. In addition, A offers a three-day rate of $474 and a nine-day rate of $403, and B offers a four-day rate of $451 and a seven-day rate of $422. Annual holding costs are 36 percent of unit price. Four hundred and twenty boxes are to be shipped, and each box has a price of $150. Which shipping alternative would you recommend?
a. ship seven-day using B
b. ship two-day using B
c. ship four-day using B
d. ship three-day using A
e. ship two-day using A