Zanda Corp.can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop.Should Zanda do this?
A)Yes,it will save $100.
B)Yes,it is simpler to do.
C)No,it will increase cost by $100.
D)It doesn't matter based on cost.

Question

Quizplus · Accepted Answer

Consolidating the shipments results in a cost of $1,300 plus $300 for the three stop-off charges, totaling $1,600. Individually, the deliveries would cost $1,500 ($500 each). Therefore, consolidating increases the cost by $100.