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Pam runs a shop in Florida, where sales often taper off during the summer. She sells two main products, surfboards and water suits. The surfboards
Pam runs a shop in Florida, where sales often taper off during the summer. She sells two main products, surfboards and water suits. The surfboards provide contribution margin of $550 each, while the water suits provide contribution margin of only $80 each. If Pam knows that her unit sales will drop in the summer, what would be the best marketing strategy for her to keep her net profits high?
- A
- :
- Increase the price of the water suits by $20.
- B
- :
- Have a sale on both surfboards and water suits, decreasing the price of both by 25%.
- C
- :
- Have a sale on surfboards during the summer, dropping the price by $100.
- D
- :
- Have a sale on water suits, dropping the price by half.
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