A wholesaler of furniture found that it had great success at boosting profits by offering its retail outlets a bulk discount on each item if their order for this winter quarter was at least 30% higher than their last winter quarter order. Many retailers were eligible for the discount. Sales volume grew enough to generate profits, even at the discounted price. The wholesaler plans to offer a similar promotion this spring and hopes for increased profits again.
Which of the following, if true, indicates the greatest flaw in the premise of repeating the promotion this spring?
Choices
A
Most retailers buy no more inventory for the spring quarter than for the winter quarter.
B
The wholesaler will hire more successful sales representatives to make calls and publicize the promotion to local retailers.
C
The retailers whose purchases were exceptionally low last year are the ones most likely to participate in the promotion.
D
The retailers who bought the discounted furniture were not obligated to pass the savings along to their buyers.
E
Buying more furniture in the winter to get the discount left many retailers with excess inventory for the spring quarter.
Which of the following, if true, indicates the greatest flaw in the premise of repeating the promotion this spring?
Choices
A
Most retailers buy no more inventory for the spring quarter than for the winter quarter.
B
The wholesaler will hire more successful sales representatives to make calls and publicize the promotion to local retailers.
C
The retailers whose purchases were exceptionally low last year are the ones most likely to participate in the promotion.
D
The retailers who bought the discounted furniture were not obligated to pass the savings along to their buyers.
E
Buying more furniture in the winter to get the discount left many retailers with excess inventory for the spring quarter.
