Question: Toys for Boys have 10 000 toy cars painted a gray

Toys for Boys have 10,000 toy cars painted a gray color that are not selling well. The selling price of the cars could be reduced from the current price of $8 to $5 each.
Alternatively, the cars could be painted red at a cost of $2 each and sold for $8. Red cars sell very well.

A. Should Toys for Boys paint the cars? Show your calculations.
B. Which option seems to have less business risk? Discuss.

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  • CreatedJanuary 26, 2015
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