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.
-Aggregating across products,retailers,or suppliers in a single order allows for a reduction in lot size for individual products because

A) fixed ordering and transportation costs are now charged to retailers.
B) fixed ordering and transportation costs are now charged to suppliers.
C) fixed ordering and transportation costs are now spread across multiple products,retailers,or suppliers.
D) holding costs are now charged to retailers or suppliers.