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1. Gargant Boats produces and services lightweight boats for recreational use. It has an unusual business model in that it controls the value chain from boat design and manufacture right through to sales and service of the boats. At the time of sale, customers can also buy a low-cost three-year maintenance package. Margins on boat sales and maintenance packages are very small, but where Gargant ultimately makes significant profit is through non-warranty repairs (from accidents and other user-caused damage) and customization (modifications and accessories). The company has determined that customers who buy the maintenance package are significantly more likely to have non-warranty repairs and modifications performed at a Gargant shop, rather than taking their boat to a third party.
Which of the following metrics is the best predictor of Gargant's success?
a) Number of boats sold
b) Percentage of customers who modify their boats
c) Percentage of boat owners who have accidents
d) Number of maintenance packages sold
Confuse about the answers on Coursehero. it choose A and also C in another answer
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