Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply:
-If there is a machine breakdown,which model is the most profitable to produce?
A)base model
B)long model
C)trick model
D)both the long model and the trick model

Question

Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply: 
-If there is a machine breakdown,which model is the most profitable to produce?
A)base model 
B)long model 
C)trick model 
D)both the long model and the trick model

Quizplus · Accepted Answer

We cannot determine the most profitable model to produce based on the given information about the per-unit data alone. However, since the question specifically refers to a machine breakdown, it is likely that the production costs associated with one or more of the models will increase due to the need for repairs or maintenance. In this case, the most profitable model to produce would be the one with the lowest production cost. Unfortunately, we do not have enough information to determine which model has the lowest production cost. Therefore, the safest assumption is that the model with the lowest selling price (i.e. the base model) is also the most profitable to produce.

Narly Skateboards Manufactures Three Different Product Lines, Base, Long, and Trick