Scenario 11.3 - Sammy's Sammwiches

Multiple Choice

Scenario 11.3 - Sammy's Sammwiches
Sammy's is the hot new lunch spot among the hipsters,who flock there at noon for their artisanal peanut butter and jelly sandwiches,which sell for $12.95.The sandwiches are made from two slices of their own artisanal bread,which they bake continuously throughout the day at a rate of seven loaves an hour (each loaf contains twenty slices) .The actual cost of a loaf of bread is $1 and the cost to hold a loaf is 80%,since freshness is important in baking as well as to hipsters.The cost to run a new batch of a dough is $3 per loaf.Sammy's sells their sandwiches at a rate of fifty per hour.
-What is the optimal batch size to produce?

A) 8.36 loaves
B) 1.8 loaves
C) 5.56 slices
D) 8.36 slices