A manufacturer of washing machines and dryers is experiencing a period of decreasing sales. Therefore, it provides rebates and free installation to customers to

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During periods of slack or decreasing sales, contests, prizes, vacations, and other sales promotions are sometimes offered to customers to maintain sales goals. Advertising is often used to stabilize sales by making customers aware of slack use periods. For example, auto manufacturers often provide rebates, free options, or lower-than-market interest rates to stabilize sales and thereby keep production lines moving during temporary slowdowns. A stable sales pattern allows the firm to run efficiently by maintaining a consistent level of production and storage and utilizing all its functions so that it is ready when sales increase.

A Manufacturer of Washing Machines and Dryers Is Experiencing a Period