The BRC Company is considering the introduction of a new line of high end electronics.Because there is considerable uncertainty with regard to the demand for the products,the company would probably be served better by a variable cost structure.

Question

Quizplus · Accepted Answer

A variable cost structure would allow the company to adjust its production and costs based on the level of demand, thus reducing the risk of producing too much or too little and potentially losing profits. This would be beneficial in a scenario where there is uncertainty about demand for the new product line.

The BRC Company Is Considering the Introduction of a New