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Mechanicorp’s newest product costs so little to make
that it appears doubtful the company will be able to
sell it without increasing the markup the company
usually allows for profit: potential clients would
simply not believe that something so inexpensive
would really work. Yet Mechanicorp’s reputation is
built on fair prices incorporating only modest profit
margins.
The statements above, if true, most strongly support
which of the following?
(A) Mechanicorp will encounter difficulties in trying
to set a price for its newest product that will
promote sales without threatening to compromise
the company’s reputation.
(B) Mechanicorp achieves large annual profits, despite
small profits per unit sold, by means of a high
volume of sales.
(C) Mechanicorp made a significant computational
error in calculating the production costs for its
newest product.
(D) Mechanicorp’s newest product is intended to
perform tasks that can be performed by other
devices costing less to manufacture.
correct answer is a)
but i thought b) is better than a) |