Question

Selling Company produces its product in batches of 100, yet its average customer only purchases 10 at a time. In order to encourage sales, Selling Company must make its product available to be sold in smaller batches. This process is known as a. quantities. b. breaking bulk. c. limited goods. d. none of these.

Answer 1

b. breaking bulk

Step-by-step explanation:

Bulk breaking or breaking the bulk is the process of subdividing large quantities of a product into smaller units to be sold to consumers. Manufacturers will always produce and transport in bulk to enjoy economies of scale. On the other hand, consumers will prefer to buy in smaller quantities due to lack of storage space, budget constraints, and to avoid wastage and spoilage.

The act of dividing manufactured goods into smaller units is what is referred to as bulk breaking. Wholesalers and large-scale retailers usually buy in bulk, break the bulk and sell to consumers in smaller quantities. Some producers, like the selling company, may also engage in bulk breaking.