The Manager of an Electronics and Appliance Store Is Challenged

question 125

Multiple Choice

The manager of an electronics and appliance store is challenged by the corporate office to increase the use of repair and replacement policies for these products.Which approach should the manager consider to meet the corporate office's expectation? ​

• A)​increase the price of the policies until the market adjusts
• B)​install shop bots for customers to research product policies
• C)​bundle the repair and replacement policies as part of the sale price of the products
• D)​strategize for new product policies to be introduced alongside high-volume sale items
• E)​reduce the prices of popularly sold items and charge a higher fee for the repair policies

---

Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically resulting in the reduction of cost per unit.

Aircraft Production

The process and industry involved in designing, manufacturing, and assembling aircraft.

Newspaper Printing

The process of mass-producing copies of a newspaper document, whereby the news and other data are printed onto papers.

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production rises.