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A Carrier Takes Three Weeks to Deliver a Product Which

Question 112

Multiple Choice

A carrier takes three weeks to deliver a product which has average sales of 1,000 units per week. The unit cost is $20 each and the carrying cost is 15%. What is the savings in the transportation inventory cost if management decides to change the mode of transportation to decrease time to one week?


A) $2,000
B) $3,000
C) $6,000
D) $9,000

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