A manufacturer of men’s dress socks sought to increase profits by increasing sales. The size of its customer pool was remaining steady, with the average customer buying twelve pairs of dress socks per year. The company’s plan was to increase the number of promotional discount-sale periods to one every six months.

Which of the following, if it is a realistic possibility, casts the most serious doubt on the viability of the company’s plan?

  1. New manufacturing capacity would not be required if the company were to increase the number of pairs of socks sold.
  2. Inventory stocks of merchandise ready for sale would be high preceding the increase in the number of discount-sale periods.
  3. The manufacturer’s competitors would match its discounts during sale periods, and its customers would learn to wait for those times to make their purchases.
  4. New styles and colors would increase customers’ consciousness of fashion in dress socks, but the customers’ requirements for older styles and colors would not be reduced.
  5. The cost of the manufacturer’s raw materials would remain steady, and its customers would have more disposable income.

Highlight to see answer: C

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