The owner of Downtown Car Repair, a well-established business, has hired two new mechanics who are trained to work on luxury cars like Mercedes-Benz and Lexus. To pay for the expertise of the new mechanics and the price of replacement parts for these cars, the owner raised prices by 15 percent. Downtown Car Repair's major challenge will be:
A) avoiding conflict between the new and old mechanics.
B) changing the firm's image enough so that new customers will accept the higher-priced services.
C) determining variable costs.
D) calculating break-even points.
E) predicting the reaction of the shop's competitors.
Correct Answer:
Verified
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