A manager at Stateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost $138 less than using two-day freight. The primary consideration is holding cost, which is $10 per unit a year. 2,280 items are to be shipped.
Which alternative would you recommend? (Round your intermediate calculations to 2 decimal places.)
Two-day freight
Five-day freight
Which of the two given is correct?