NEKP IncSells Two Versions of Its Product, Standard and Deluxe

question 19

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:

Cognitive Ability

The mental capacity for processing information, applying knowledge, and changing preferences or behavior based on knowledge or reasoning.

Generalizable

Valid in other contexts beyond the context in which the selection method was developed.

Publishing Company

A business specializing in producing and distributing books, magazines, journals, or digital content.

Economic Value

The worth of a good or service determined by the market or its impact on an entity's financial condition.