According to the product life cycle model, profits tend to: remain relatively constant until the decline stage, when they begin to drop. reach a peak near the end of the maturity stage. peak before sales reach their highest level. rise rapidly during the market preference stage.
Profit peak before sales reach their highest level Explanation: product life cycle is the transition of a product through the four stages of Introductory , Growth , maturity and decline stages. The product manifest different attributes on attaining each of the listed stages. Peculiar to the decline stage is continuous fall in sales volume which leads to drop in profit or even losses as the company struggles to work things out. Before the decline stage is the growth stage , This is the level where sales increase rapidly and the profit attain its peak before it begins to decline due to fall in sales that is experienced at the decline stage
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