Question 10
The scatter plot of Gear Assembly sales quantity vs. two-year revenue shows GA6 (BS4/6) as a high-volume product (~225,000 units) and GA7 (BS4/6) as a high-revenue product (~INR 90 million). Most other assemblies cluster along a linear trend. What strategic insight can be drawn about GA6?
GA6 should be discontinued because its revenue per unit is low
GA6 is likely a lower-priced, high-demand product that drives production volume and capacity utilization. It is strategically important even if revenue per unit is modest
GA6 is an outlier caused by a data error and should be ignored
GA6 and GA7 are interchangeable in the product portfolio