Statement: The largest computer manufacturer slashed prices of most desktop models by about 15% with immediate effect. Assumptions: I. The company may incur heavy losses because of the price cuts. II. Sales of the company’s desktops may increase in the near future.

Introduction / Context:Price reductions aim to stimulate demand, gain share, or clear inventory. We separate necessary demand-side assumptions from speculative cost-side consequences.

Given Data / Assumptions:

• Action: immediate ~15% price cut on most desktop models.
• No explicit comment on margins or loss-leadership strategy.

Concept / Approach:The business rationale presupposes that lower prices will increase sales volume (II). Losses (I) are not necessary; price cuts may be funded by efficiencies, scale, or prior markups and can remain profitable.

Step-by-Step Solution:1) Without II, the cut would not advance typical objectives (volume/share).2) I adds an outcome (losses) that is neither required nor implied.

Verification / Alternative check:Many price promotions increase contribution through elasticity; losses are not inherent.

Why Other Options Are Wrong:They either omit the demand premise or add an unnecessary negative financial assumption.

Final Answer:Only Assumption II is implicit.