115. The following appeared in a memorandum from the vice-president of the Dolci Candy Company. “Given the success of our premium and most expensive line of chocolate candies in a recent taste test and the subsequent increase in sales, we should shift our business focus to producing additional lines of premium candy and discontinuing our lesser-priced, ordinary candies. When the current economic boom ends and consumers can no longer buy major luxury items, such as cars, they will still be able to afford small luxuries, such as expensive candies.” 1Success in the taste test and the susequent sale do not guarantee the profitability of the premium and most expensive chocolate candies until the cost-benefit analysis has been made. 2Even if the premium and most expensive chocolate candies are profitable at the original scale, it is still imprudent to say that the additional line will also bring profit to the company. 3The vice president's prediction of the future especially after the economic boom is groundless without any substantive evidence. |