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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 in
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 in all four regions, then it should consider reducing the $15 million annual costs for production run setup costs associated with producing 500 models/styles at each of its production facilities by instituting production improvement option B at each of its production facilities. o reducing expenditures per model for enhanced styling/features at each production facility by an amount sufficient to cover the resulting $15 million annual charge for production run setup costs for 500 models. offsetting some of the $15 million annual charge for production run setup costs for 500 models by trimming expenditures for TQM/Six Sigma programs at each production facility and also reducing the percentage use of superior materials at each production facility. instituting production improvement option C at each of its production facilities. o building production facilities in all four geographic regions and producing 500 models/styles at each of these facilities
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