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Maple Corporation is a manufacturer of breakfast products. Maple sells its products to wholesale distributors and directly to large retail chains.
Maple Corporation is a manufacturer of breakfast products. Maple sells its products to wholesale distributors and directly to large retail chains. Maple's Real Maple brand table syrup is very popular due to its high content of real maple syrup. To boost sales of its pancake batter mix, Maple Corporation conditions the sale of its table syrup on the buyer's agreement to buy Maple's pancake mix. To get its customers to cooperate with this arrangement, Maple gives an extra 5% trade discount for each syrup/mix transaction. The pancake batter mix is not as popular as the syrup, causing retailers to experience oversupplies of mix. To induce customers to buy the oversupply, retailers are having to offer deep discounts on the mix.
