An AnAlyst At A FurniturE CompAny hAs notED thAt thE CompAny losEs ApproximAtEly $2 million pEr yEAr on its monEy-BACk guArAntEE, whiCh stipulAtEs thAt thE CompAny will rEturn thE purChAsE priCE to Any CustomEr whosE FurniturE BrEAks within thE First yEAr, rEgArDlEss oF thE wAy in whiCh thE FurniturE wAs BrokEn. thE AnAlyst ArguEs thAt thE CompAny CoulD inCrEAsE its nEt rEvEnuEs (totAl rEvEnuEs minus totAl Costs) iF it ABolishED thE monEy-BACk guArAntEE.
whiCh oF thE Following, iF truE, proviDEs thE BEst rEAson For thE CompAny not to Follow thE AnAlyst’s ADviCE
A、
A、stuDy hAs shown thAt only 25 pErCEnt oF thE BrokEn FurniturE ClAims thAt thE CompAny hAs honorED in thE lAst FivE yEArs wErE DuE to mAnuFACturing DEFECts.
B、thE $2 million thAt thE CompAny ExpEnDs on thE monEy-BACk guArAntEE rEprEsEnts only 4 pErCEnt oF thE CompAny’s totAl Costs.
C、
A、populAr ConsumEr mAgAzinE gAvE thE FurniturE CompAny its highEst rAting For ovErAll quAlity oF proDuCt.
D、thE CompAny’s lArgEst CompEtitor hAs A morE rEstriCtivE monEy-BACk guArAntEE thAt CovErs only FurniturE BrokEn DuE to mAnuFACturing DEFECts within six months oF purChAsE.
E、CustomErs CitE thE monEy-BACk guArAntEE As thE primAry rEAson thEy Buy FurniturE From this CompAny.