A manufacturer of men s dress socks sought to increase : GMAT Critical Reasoning (CR)
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# A manufacturer of men s dress socks sought to increase

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A manufacturer of men s dress socks sought to increase [#permalink]

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20 Jan 2010, 08:33
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A manufacturer of men’s dress socks sought to increase profits by increasing sales. The size of its customer pool was remaining steady, with the average customer buying twelve pairs of dress socks per year. The company’s plan was to increase the number of promotional discount-sale periods to one every six months.
Which of the following, if it is a realistic possibility, casts the most serious doubt on the viability of the company’s plan?
(A) New manufacturing capacity would not be required if the company were to increase the number of pairs of socks sold.
(B) Inventory stocks of merchandise ready for sale would be high preceding the increase in the number of discount-sale periods.
(C) The manufacturer’s competitors would match its discounts during sale periods, and its customers would learn to wait for those times to make their purchases.
(D) New styles and colors would increase customers’ consciousness of fashion in dress socks, but the customers’ requirements for older styles and colors would not be reduced.
(E) The cost of the manufacturer’s raw materials would remain steady, and its customers would have more disposable income.
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20 Jan 2010, 08:43
option C.
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20 Jan 2010, 10:34
OA
[Reveal] Spoiler:
C

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05 Mar 2010, 05:52
nice info
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05 Mar 2010, 06:52
The passage says company's plan is to increase the number of promotional discount-sale periods.
In the answer choices except C none of them discuss issues in this plan.

So C it is.
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05 Feb 2011, 05:25
only C seems right.
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05 Feb 2011, 19:37
Easy one. C.
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06 Feb 2011, 23:28
C
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07 Feb 2011, 19:03
+1 for C.. other options are mostly irrelevant
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31 May 2011, 13:10
Hey This is Emiley..!! It is a fashion conscious era. Everyone takes care of his dressing because this is the main thing by which you can look cool. So in summer always use tank top and shorts to prevent yourself from heat.
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31 May 2011, 13:17
If customer do not buy even after offering discount then the plan of manufacturer will not work.
Ans. C
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Re: A manufacturer of men’s dress socks [#permalink]

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06 Jun 2011, 03:46
C hits by a slight assumption where the customer base might be hampered by the competitors sales periods.

C it is.
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06 Jun 2011, 20:04
C is the only one that remotely weakens the method of sales increase by the company
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06 Oct 2014, 01:45
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hey every1..
why not option E

"The cost of the manufacturer's raw materials would remain steady, and its customers would
have more disposable income."

if cost of raw materials remains consistent and customers would have more disposable income ...then the discount offered wont affect the customers with high incomes and as a result they will be indifferent towards the discount, the discount sale periods wont affect them and hence the plan wont be viable.

what is the problem in my line of reasoning ..
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Re: A manufacturer of men s dress socks sought to increase [#permalink]

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07 Oct 2014, 03:40
shreygupta3192 wrote:
hey every1..
why not option E

"The cost of the manufacturer's raw materials would remain steady, and its customers would
have more disposable income."

if cost of raw materials remains consistent and customers would have more disposable income ...then the discount offered wont affect the customers with high incomes and as a result they will be indifferent towards the discount, the discount sale periods wont affect them and hence the plan wont be viable.

what is the problem in my line of reasoning ..

Your line of thoughts seems fine to me.But i think you extrapolated too much i.e it just said more disposable income that doesn't mean they became so rich they are indifferent. The argument doesn't states anything about their previous income status so it may or may not weaken.

C is more direct.
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Re: A manufacturer of men s dress socks sought to increase   [#permalink] 07 Oct 2014, 03:40
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