The Following Information Pertains to Salamandre Company's Three Products

question 44

Multiple Choice

The following information pertains to Salamandre Company's three products: Assume that product C is discontinued and the extra space is rented for $300 per month. All other information
Remains the same as the original data. Annual profits will

• A) remain the same.
• B) increase by $250.
• C) decrease by $250.
• D) increase by $550.

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Definitions:

Substitute Product

A good or service that can replace another to fulfil the same needs or desires, offering an alternative choice to consumers.

Complementary Product

A product that adds value to another primary product, usually leading to increased demand when paired together.

Complementary Brands

Brands that offer products or services that enhance or are necessary for the use of another product, creating mutual demand.

Increase Profits

The action or strategy aimed at boosting a company's earnings above its current levels.