When Foxie,Ltd.developed a new facial cream that buyers in California loved,it delayed its entry into that market by another 6 months.Foxie had just moved from a small facility employing 20 persons to a larger production facility that could accommodate 120 employees.It appears the delay in going into California was so that its introduction could coincide with
A) investment commitments.
B) production capacity.
C) seasonal fluctuations.
D) pent up demand.

Question

Quizplus · Accepted Answer

The delay in entering the California market was likely due to Foxie, Ltd. wanting to ensure that they had enough production capacity to meet the demand for their new facial cream. Moving to a larger production facility that can accommodate 120 employees suggests that they were investing in increasing their production capacity, and delaying the market entry would give them time to ramp up production before the product was introduced.