You Company Needs to Ship Two Large Machines Which Cost

Multiple Choice

You company needs to ship two large machines which cost about $75,000 each to a customer across the country.The machines will be shipped by rail at a cost of $2,000.Shipping will take 14 days.Your company uses 15% to determine the annual inventory carrying cost.What are the approximate total costs of shipping and in-transit inventory?

A) $2,000.
B) $863.
C) $2,863.
D) $2,026.