Manufacturers of mechanical pencils make most of their profit on pencil leads rather than on the mechanical pencils themselves. The Write company, which cannot sell pencil leads as cheaply as other manufacturers can, plans to improve on the design of their mechanical pencil so that it will only accept specially designed pencil lead sold by the Write company. The specially designed pencil lead will be sold at the same price as the Write company’s current lead. Which of the following, if true, strongly supports the Write company’s sales projection that this plan will lead to an increase in sales of pencil leads? First time buyers of mechanical pencils tend to buy the least expensive mechanical pencils available. Annual sales of mechanical pencils are expected to triple over the next 3 years. A Write company executive is always studying new ways to reduce the cost of manufacturing pencil leads. A rival manufacturer announced similar plans to introduce a mechanical pencil that would only accept lead produced by that manufacturer. In extensive test marketing, mechanical pencil users found that the improved Write company mechanical pencil design was superior to other mechanical pencils they had used.
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