Company X is a wholesaler.

CIMA BA1 Question Answer

Company X is a wholesaler. It sells the majority of its products in bulk to a small number of restaurants and cafes in the local area.

Which of the following will Company X experience in light of this?

Select ALL that apply.

A reduction in distribution costs as a result of economies of scale

A reduction in the number of staff needed to perform certain roles within the company

The company will not be able to buy in bulk at a discount in the future

The company will not be able to maximise efficiency due to rapid business growth

It will not experience the benefits of economies of scale

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