Scenario 11.3 - Sammy's Sammwiches

question 1

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.
-A key to reducing cycle inventory is

• A)the reduction of holding cost.
• B)the reduction of manufacturing cost.
• C)the reduction of lot size.
• D)the reduction of warehouse space.

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Definitions:

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A measure of the cost or disutility of prejudice; the monetary amount an employer is willing to pay to hire a preferred worker rather than a nonpreferred worker of the same ability.

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An economic theory that describes how public sector employment can impact wages and employment levels in the private sector.