Suppose you are shipping 1,000 pounds of product to a customer location that is 500 miles away from you.The customer calls you and increases the order size to 10,000 pounds.Which of the following is NOT LIKELY to occur as a result of this change?
A)The cost per pound of transportation for the order will decrease.
B)The total cost of transportation for the order will increase.
C)Both of these are likely to occur.

Question

Quizplus · Accepted Answer

Increasing the order size typically leads to economies of scale, reducing the cost per pound, while the total cost will naturally increase due to the larger volume. Both A and B are likely to occur.

Suppose You Are Shipping 1,000 Pounds of Product to a Customer