Based on the projected selling price of $20 per unit,the manufacturer invested a substantial portion of its available cash in a machine that could produce twenty-thousand gumballs in an hour.If consumers weren't willing to pay this much for gum,then the manufacturer faced significant:
A) Financial risk.
B) Promotion risk.
C) Cost estimate risk.
D) Market risk.

Question

Quizplus · Accepted Answer

The risk faced by the manufacturer in this scenario is market risk, as it depends on the willingness of consumers to pay the projected selling price for the gumballs. If consumers are not willing to pay this much, then the manufacturer may have difficulty selling their product and generating revenue, which could result in financial losses. However, the other options (promotion risk, cost estimate risk) do not accurately capture the key risk factor in this scenario.

Based on the Projected Selling Price of $20 Per Unit,the