Which of the following, if true, would most strengthen the argument above?
Xorx's plan significantly reduces costs by eliminating the need to invest in a network of car dealerships.
By removing the financial burden of establishing a dealership network, Xorx can allocate resources more efficiently, thereby enhancing profit margins on the new electric car. This strategic decision directly supports the argument that Xorx will be able to achieve respectable profits despite the high production costs.
While a higher price may indicate a premium product, it does not necessarily strengthen the argument regarding profitability. If consumers are unwilling to pay the increased price, sales could suffer, undermining the potential for respectable profits.
This statement highlights a competitive advantage for the Xorx car but does not address the cost structure or profitability directly. It suggests that there is a market for high-performance vehicles, but it does not strengthen the argument regarding Xorx's ability to manage production costs effectively.
While this feature may attract consumers and enhance the car's appeal, it does not provide any information regarding cost savings or profit margins for Xorx. Therefore, it does not strengthen the argument about the company's financial viability.
This environmental benefit could appeal to a segment of consumers, but it does not directly relate to the company's production costs or profitability. Thus, it does not effectively strengthen the argument regarding Xorx's financial success.
In conclusion, the most effective support for Xorx's argument about profitability is the elimination of dealership costs, as stated in choice E. This strategic move enhances cost efficiency, allowing Xorx to maintain competitive pricing and profit margins despite the high production costs associated with their high-performance electric car. The other choices, while relevant to market appeal or product features, do not directly address the financial implications necessary for strengthening the initial argument.
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