17. Product redesign can result in ______.
improved profits |
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reduced cost |
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better shareholder value |
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all of the above |
Answer: All of the above
Explanation: Product redesign benefits in increasing the profit, reduces the manufacturing cost and improves the shareholder value. Product redesign is required to provide the products that are expected in the market. Product redesign techniques involves making modifications to the products to improve its value in the market, sales, product preference, etc.
17. Product redesign can result in ______. improved profits reduced cost better shareholder value all of...
Modifying a product to increase its “value added” benefits customers and can also enhance supplier profits. For example, suppose an improved version of a product increases customer value added by $25 per unit. (In effect, the demand curve undergoes a parallel upward shift of $25.)a. If the redesign is expected to increase the item’s marginal cost by $30, should the company undertake it? b. Suppose instead that the redesign increases marginal cost by $15. Should the firm undertake it, and...
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