What is the total cost for option 1 and 2 and, which transportation option is preferred based on cost? We are moving Samsungelectronics from Indonesia to Eastern Europe. The value of the electronics being shipped is $560,000. The company's holding cost ofinventory is 40% of the value of the products being shipped. The company has two transportation options. Option 1: Truck and Boat,Days in transit: 30 days, Shipping Cost: $15,000 Option 2: Air, Rail and Truck, Days in transit: 20 days Shipping Cost: $20,000Select one:O a. Option 1 cost: $32,273.97; Option 2 cost: $33,410.96; preferred option based on cost: option 2O b. Option 1 $239,000; Option 2 $244,000; preferred option based on cost: option 1Oc Option 1 cost: $33,410.96; Option 2 cost: $32,273.97; preferred option based on cost: option 2O d. Option 1 $244,000; Option 2 $239,000; preferred option based on cost: option 1

Given Information- Value of the electronics shipped = $560,000 Company's holding cost = 40% of the…

Answered: What is the total cost for option 1 and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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