Which of the following is most likely to result in high shipping and handling costs

Question

A promotion for free shipping on orders over a predetermined order total
An increase in demand for widely used packaging material
An increase in supply of readily and widely available packaging material
A lower than average hourly pay rate for material handlers

Answer 1

The option that is most likely to result in high shipping and handling costs is:

A promotion for free shipping on orders over a predetermined order total.

This is because offering free shipping can lead to increased logistical costs for the company, especially if customers place smaller orders to qualify for free shipping, which may not cover the shipping costs adequately. It can also lead to larger volumes of shipments that may not be optimized for cost-efficiency compared to standard shipping practices.