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Just Add Water, a Boat Dealership, Has Been Successful in a Strong

Question 60

Multiple Choice

Just Add Water, a boat dealership, has been successful in a strong economy by spending 5% of its sales revenues on promotions. What adjustments, if any, should Just Add Water make now that the economy has gone into recession?


A) Continue to spend 5% of sales on promotions, even though this results in a lower promotional budget.
B) Increase the promotional budget to attract new customers
C) Decrease the promotional budget. No one has any money to spend anyway.
D) Spend 5% of profits on promotions rather than 5% of sales.

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