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If a company wants to enhance the profitability of differentiating its branded product offering from rivals by offering buyers 500 models/styles to choose from, then
If a company wants to enhance the profitability of differentiating its branded product offering from rivals by offering buyers 500 models/styles to choose from, then it should consider reducing the $14 million annual costs for production run setup costs associated with producing 500 models/styles at each of its plants by | ||
instituting plant upgrade option B (at a cost of $8 million per million pairs of plant capacity). | ||
cutting the percentage use of superior materials (to help offset some of the $14 million in annual production run setup costs for 500 models/styles). | ||
building plants in all four geographic regions and producing 500 models/styles at each plant. | ||
instituting plant upgrade option C. | ||
doubling the expenditures for enhanced styling/features |
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