Diomedes Motors has just decided to start using Rapilux Tires on most

Dear Harley1980,
I'm happy to respond. As always, I am happy to answer questions about problems I created.

So, Diomedes Motor is switching to this new tire. The new tire is about the same price, and nothing changes about the sticker price or the profit from the sale of an individual car. Yet, Diomedes Motors is expecting an increase in profits. Why would switching to the new tire bring more money into Diomedes?

A) The new Rapilux Tires facilitate loading the new cars onto the trucks that deliver them to the Diomedes showroom.
This is not big. This is mostly a matter of convenience for the big burly guys that load and unload cars and deliver them. Perhaps it would result in some modest decrease in shipping and delivery costs, but that would be chicken feed, completely negligible one the scale of a car company's budget.

B) The change to Rapilux Tires in most Diomedes models moves those models to the highest safety rating category; several national consumer advocacy groups give focused advertising to cars in this category.
This is interesting. New tires ==> new safety rating ==> national focused advertising. Whoa! Think about that. Ads around the country suddenly saying: buy Diomede Motors cars because they have the highest safety rating. Safety is a HUGE factor in car purchases, and if the company is getting free national advertising that communicates how safe its cars are, that could lead to an avalanche of new customers! This is a very promising choice.

C) Since Diomedes has replaced the tires on only some of its models, it can continue to accommodate car buyers who prefer the older tire type.
Some customers buy the new tires, some buy the old, and the two tires are around the same price, so this is not going save much money or create much in the way of new revenue.

D) Few car buyers are likely to decide against buying a Diomedes Motors model simply because it now comes with Rapilux Tires.
Well, this simply tells us that they are not likely to lose money, but that does not by any means guarantee that they are out to make a large amount of additional money.

E) Some of the tires previously used on these particular Diomedes models are being phased out by those tire manufacturers, and would have to be replaced anyway, and no tire that would fit these Diomedes Models is any cheaper than the Rapilux Tires chosen.
So, this choice had a lower cost than other choices. Great. They have minimized costs, with a tire that costs about the same as the old tire they were using. They are making more profits compared to what they would be making if they chose one of the more expensive tires. This does not explain any increase from the old tire to the new tire, which is the change that really concerns us.

Of these five answers, the only one that suggest a channel by which a whole lot of new revenue might be flowing in to Diomedes Motors is (B). That's the only possible answer.

Does all this make sense?
Mike