NEKP IncSells Two Versions of Its Product: Standard and Deluxe

question 43

Multiple Choice

NEKP Inc.sells two versions of its product: Standard and Deluxe.The Standard model has a 15 percent profit margin and the Deluxe model has a 17 percent profit margin.The Standard model has a 30 percent contribution margin and the Deluxe has a 23 percent contribution margin.If other factors are equal, which product should NEKP emphasize to its customers?

• A)the Standard model
• B)the Deluxe model
• C)Selling either results in the same additional income for the company.
• D)Not enough information is given.

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Definitions:

Economic Structure

The classification of an economy based on various sectors, such as agriculture, manufacturing, and services, indicating the allocation of resources among these sectors.

Ownership Of Resources

The legal right or control individuals or entities have over natural, physical, or intellectual properties and resources.

Economic Activities

Activities that involve the production, distribution, and consumption of goods and services within an economy.

Absolute Advantage

The capability of a country or individual to produce more of a good or service with the same amount of resources as competitors.