Motorvation recently designed the Ambi, which it hopes will appeal to

Question

Motorvation recently designed the Ambi, which it hopes will appeal to those looking for an affordable hybrid vehicle. The costs to produce the Ambi, however, outweigh the revenue Motorvation expects to make from the Ambi in the coming year. Nonetheless, Motorvation is confident that the Ambi will ultimately become one of its most profitable vehicles.

Which of the following if true, supports Motorvation's expectations regarding the Ambi?

A) The parts used to make the Ambi will be used on another line of cars that Motorvation also expects to be profitable.

B) Since the Ambi is Motorvation's first hybrid car, the company had several costly setbacks during production.

C) The Tesla, a model from a competitor, has gone on, after initial lukewarm sales, to become the market leader.

D) The majority of the Ambi's production costs came from research and development, costs Motorvation will be able to recoup, from from sales of the Ambi, within one year of the Ambi's release.

E) The basic principle with hybrid vehicles is that the different motors work better at different speeds.

ramlala · Answer

Motorvation recently designed the Ambi, which it hopes will appeal to those looking for an affordable hybrid vehicle. The costs to produce the Ambi, however, outweigh the revenue Motorvation expects to make from the Ambi  in the coming year . Nonetheless, Motorvation is confident that the Ambi will ultimately become one of its most profitable vehicles.

Which of the following if true, supports Motorvation's expectations regarding the Ambi?

A) The parts used to make the Ambi will be used on another line of cars that Motorvation also expects to be profitable.
 This doesn't affect on profitability of AMBI.

B) Since the Ambi is Motorvation's first hybrid car, the company had several costly setbacks during production.
 It may be there but recovery of the cost is not mentioned here. So we can not predict when AMBI will be profitable.

C) The Tesla, a model from a competitor, has gone on, after initial lukewarm sales, to become the market leader.
 Market leader doesn't means profitable

D) The majority of the Ambi's production costs came from research and development, costs Motorvation will be able to recoup, from from sales of the Ambi, within one year of the Ambi's release.
 This sounds good. Initial Cost will be recovered in one year. Working cost will be lower than revenue lead to profitability.

E) The basic principle with hybrid vehicles is that the different motors work better at different speeds.
 Not relevant

IMO D

hientranzx · Answer

Motorvation recently designed the Ambi, which it hopes will appeal to those looking for an affordable hybrid vehicle. The costs to produce the Ambi, however, outweigh the revenue Motorvation expects to make from the Ambi in the coming year. Nonetheless, Motorvation is confident that the Ambi will ultimately become one of its most profitable vehicles.
Premise: The costs to produce the Ambioutweigh the revenue Motorvation expects to make from the Ambi in the coming year
Conclusion: Ambi will ultimately become one of its most profitable vehicles

Which of the following if true, supports Motorvation's expectations regarding the Ambi?

A) The parts used to make the Ambi will be used on another line of cars that Motorvation also expects to be profitable.
 another line of cars is not relevant

B) Since the Ambi is Motorvation's first hybrid car, the company had several costly setbacks during production.
 several costly setbacks is not relevant to "most profitable vehicles"

C) The Tesla, a model from a competitor, has gone on, after initial lukewarm sales, to become the market leader.
 The Tesla is not relevant to Ambi profit

D) The majority of the Ambi's production costs came from research and development, costs Motorvation will be able to recoup, from from sales of the Ambi, within one year of the Ambi's release.
 This is the correct answer. After the 1st year, Motorvation don't need to pay for research and development anymore --> reduce cost --> profit can be improved

E) The basic principle with hybrid vehicles is that the different motors work better at different speeds.
 "different motors" is not relevant to profit

kntombat · Answer

Which of the following if true, supports Motorvation's expectations regarding the Ambi?

A) The parts used to make the Ambi will be used on another line of cars that Motorvation also expects to be profitable.    Not our answer    ( This could be true but the stimulus doesn't talk about Ambi having another line of cars which could share parts with the hybrid. )

B) Since the Ambi is Motorvation's first hybrid car, the company had several costly setbacks during production.    Not our answer    (  This is an opposite answer, it doesn't support Motorvation's expectation regarding the Ambi whereas it could be a cause for concern. )

C) The Tesla, a model from a competitor, has gone on, after initial lukewarm sales, to become the market leader.    Not our answer    (  What worked in Tesla's favor may not work in Ambi's favor, hence this statement could be true, could be false. )

D) The majority of the Ambi's production costs came from research and development, costs Motorvation will be able to recoup, from from sales of the Ambi, within one year of the Ambi's release.    This is our answer    (  This statement clearly supports Motorvation's expectation regarding AMBI, as the company will not have to undertake anymore R&D expenses for AMBI. )

E) The basic principle with hybrid vehicles is that the different motors work better at different speeds.    Not our answer    (  This statement is irrelevant and doesn't add anything. )

The OA is D.

VerbalBot · Answer

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Motorvation recently designed the Ambi, which it hopes will appeal to

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