Question detail
Northline Gym serves repeat customers while raising prices; the case evidence includes unit contribution of ?2,438, sales of 958 units, and a 29% change in costs or demand. Which option best applies Explain costs and benefits of maintaining quality, including sales, reputation, price, inspection, training and recalls?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The concept of quality
Question
- A. Use reputation to judge labour productivity, lenders impact, and the business objective in Maintaining quality.
- B. Give only a definition of The concept of quality without using the case evidence.
- C. Treat break-even and profit as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use reputation to judge labour productivity, lenders impact, and the business objective in Maintaining quality.
Explanation
Choose this response because Use reputation to judge labour productivity, lenders impact, and the business objective in Maintaining quality. The case evidence gives ?3,938, 958 units, and 29%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse break-even and profit, miss the lenders, or ignore the business objective.
Common mistake
Maintaining quality common mistake 1
Giving a vague answer instead of directly addressing: Explain costs and benefits of maintaining quality, including sales, reputation, price, inspection, training and recalls..
Answer by clearly explaining how to explain costs and benefits of maintaining quality, including sales, reputation, price, inspection, training and recalls..
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