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Brand X designs and builds custom sports shoes, one shoe at a time. It recently announced plans to sell "Trailblazer," a sports shoe that will cost five times more to manufacture than any other sports shoe that has ever been created. Which of the following, if true, most supports the prediction that “Trailblazer” shoe line will be profitable?Choices:- Because of its reputation as an original and exclusive sports shoe, the “Trailblazer” will be favoured by fashion-conscious urban youth willing to pay exceptionally high prices in order to standout Of the last four new sports shoes that Brand X has released, three have sold at a rate that was higher than projected. A rival brand recently declared bankruptcy and ceased manufacturing shoes. The market for “Trailblazer” will not be more limited than the market for other Brand X shoes

Question

Brand X designs and builds custom sports shoes, one shoe at a time. It recently announced plans to sell "Trailblazer," a sports shoe that will cost five times more to manufacture than any other sports shoe that has ever been created. Which of the following, if true, most supports the prediction that “Trailblazer” shoe line will be profitable?Choices:- Because of its reputation as an original and exclusive sports shoe, the “Trailblazer” will be favoured by fashion-conscious urban youth willing to pay exceptionally high prices in order to standout Of the last four new sports shoes that Brand X has released, three have sold at a rate that was higher than projected. A rival brand recently declared bankruptcy and ceased manufacturing shoes. The market for “Trailblazer” will not be more limited than the market for other Brand X shoes

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Solution

The statement that most supports the prediction that the "Trailblazer" shoe line will be profitable is: "Because of its reputation as an original and exclusive sports shoe, the “Trailblazer” will be favoured by fashion-conscious urban youth willing to pay exceptionally high prices in order to standout".

This statement suggests that despite the high manufacturing cost, there is a specific target market (fashion-conscious urban youth) that values the exclusivity and originality of the "Trailblazer" and is willing to pay a high price for it. This could potentially cover the high manufacturing costs and make the shoe line profitable.

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