Final answer:
To enhance profitability through product differentiation, the company should consider reducing the $15 million annual costs for setup associated with producing 500 models/styles at each facility.
Step-by-step explanation:
To enhance the profitability of differentiating its branded product offering from rivals by offering buyers 500 models/styles to choose from in all four regions, the company should consider reducing the $15 million annual costs for production run setup costs associated with producing 500 models/styles at each of its production facilities.
Reducing the setup costs would help lower the overall production costs, allowing the company to offer a larger variety of products without significantly impacting its profitability.
The reduction in setup costs can be achieved by implementing process improvements, such as optimizing production schedules, improving machinery efficiency, and minimizing waste.