The Initial Margins for a New Line of Cosmetics That

Multiple Choice

The initial margins for a new line of cosmetics that Kim has developed are slim due to development costs. She is wondering whether they will improve with economies of scale. Which of the following product development trade-offs is Kim dealing with?

A) Product cost vs. development costs
B) Features vs. schedule
C) Features vs. development costs
D) Features vs. product cost
E) Product cost vs. capital expenditures