Quote:
Originally Posted by MPower
Your assumption, though, that a higher price must maximize profit is incorrect. Generally, the lower BMW prices the 135i, the more revenue they will make at which point the cost of each car becomes critical. The 135i is not using many 'unique' parts, apart from the brakes, so I can not image the production costs being that high.
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Not exactly... I only assumed that BMW wants to maximize their profit, how they do so is pretty much conjecture at this point. Basically they can either sell more units at a lower price or fewer units at a higher price to generate the same overall profit.
As I said previously there are a lot of variables that we are not privy to, so it's really impossible to guess at BMW's strategy until they publish pricing. If I had to guess I would predict that volume is a bigger part of the profit equation for the 128i and that it's not as important for the 135i.
I do agree that because the 135i includes a lot of standard features it should be cheaper to produce.