Find all School-related info fast with the new School-Specific MBA Forum

It is currently 14 Sep 2014, 18:08

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

An eyeglass manufacturer tried to boost sales for the summer

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Manager
Manager
User avatar
Joined: 21 Dec 2006
Posts: 56
Followers: 0

Kudos [?]: 3 [1] , given: 0

An eyeglass manufacturer tried to boost sales for the summer [#permalink] New post 04 May 2007, 11:06
1
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

86% (02:39) correct 14% (01:49) wrong based on 182 sessions
Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 83
Page: 151
Difficulty:


An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year's summer quarter by at least 20 percent. Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter.

Which of the following, if true, most clearly points to a flaw in the manufacturer's plan to repeat the successful performance of the summer quarter?

(A) In general, a distributor's orders for the summer quarter are no higher than those for the spring quarter.
(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and radio advertising in those distributors' sales areas.
(C) The distributors most likely to qualify for the manufacturer's special discount are those whose orders were unusually low a year earlier.
(D) The distributors how qualified for the manufacturer's special discount were free to decide how much of that discount to pass on to their own customers.
(E) The distributors' ordering more goods in the summer quarter left them overstocked for the fall quarter.
[Reveal] Spoiler: OA
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesGMAT Pill GMAT Discount Codes
Manager
Manager
User avatar
Joined: 21 Dec 2006
Posts: 56
Followers: 0

Kudos [?]: 3 [0], given: 0

Re: CR - Eyeglasses [#permalink] New post 04 May 2007, 12:38
goalsnr wrote:
soxy_topacio wrote:
769. An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special
discount if their orders for that quarter exceeded those for last year’s summer quarter by at least 20 percent.
Many distributors qualified for this discount. Even with much merchandise discounted, sales increased enough
to produce a healthy gain in net profits. The manufacturer plans to repeat this success by offering the same sort
of discount for the fall quarter.
Which of the following, if true, most clearly points to a flaw in the manufacturer’s plan to repeat the successful
performance of the summer quarter?

(A) In general, a distributor’s orders for the summer quarter are no higher than those for the spring quarter.

E?

(B) Along with offering special discounts to qualifying distributors, the manufacturer increased newspaper and
radio advertising in those distributors’ sales areas.
(C) The distributors most likely to qualify for the manufacturer’s special discount are those whose orders were
unusually low a year earlier.
(D) The distributors how qualified for the manufacturer’s special discount were free to decide how much of that
discount to pass on to their own customers.
(E) The distributors’ ordering more goods in the summer quarter left them overstocked for the fall quarter.


Why E?
Senior Manager
Senior Manager
avatar
Joined: 27 Jul 2006
Posts: 299
Followers: 1

Kudos [?]: 7 [0], given: 0

GMAT Tests User
 [#permalink] New post 04 May 2007, 12:50
I will take a crack at this one.

B

Logically it would make sense that if a discount strategy works, a company should continue the strategy. However, if we can prove that the increased sales were actually caused by a different catalyst...which is what B offers.

If advertising was increased during the discount period it is not clear that the offered discount is the reason for increased performance.

E. is dealing with an inventory problem, but does not offer any reason for why the discount incentive would not work in the next quarter...
Manager
Manager
User avatar
Joined: 29 Jan 2007
Posts: 104
Followers: 1

Kudos [?]: 12 [0], given: 0

 [#permalink] New post 04 May 2007, 14:04
E it is .
If the distributors are overstocked with the summers buying , they will not go for the discounted sale this time.

Acc. to me , B doesnt say that the reason for the success of the offer in summers was due to adverstising .
In general the reason of success is attributed to adverstising which can be possible in winters dicount plan as well.
~sara
Manager
Manager
avatar
Joined: 23 Mar 2007
Posts: 177
Followers: 0

Kudos [?]: 1 [0], given: 0

GMAT Tests User
 [#permalink] New post 04 May 2007, 22:42
Another E
Manager
Manager
avatar
Joined: 11 Mar 2007
Posts: 86
Followers: 1

Kudos [?]: 2 [0], given: 0

 [#permalink] New post 04 May 2007, 23:54
At first i narrowed it down to A vs E & picked A. But then reading it more closely, i thought E is rite one.

"The distributors’ ordering more goods in the summer quarter left them overstocked for the fall quarter"

It clearly states that the distributor ordered in excess in Summber & now since he already has an inventory, he would not like to order more.
Senior Manager
Senior Manager
User avatar
Joined: 27 Mar 2007
Posts: 329
Followers: 1

Kudos [?]: 21 [0], given: 0

GMAT Tests User
 [#permalink] New post 05 May 2007, 05:39
(A) Compares the summer quarter with the spring quarter. Out of scope, it is about the next fall quarter.
(B) The manufacturer could increase the newspaper and
radio advertising in those distributors’ sales areas during the fall quarter, this is no flaw.

(C) Irrelevant, as long as the sell enoough sunglasses
(D) Irrelevant, the manufacturer only wants the sunglasses to be sold at a certain discount
(E) Which could be the reason that the sunglasses don't sell. Either the costumers have already enough sunglasses at home, so that they won't buy more or the shops are overstocked, because they wanted to qualify for the discount. Best answer! Cheers
Director
Director
avatar
Joined: 29 Nov 2012
Posts: 930
Followers: 11

Kudos [?]: 269 [0], given: 543

Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink] New post 24 Jul 2013, 07:37
So the problem here is eyeglass manufactures plans to use same strategy as they did in the last quarter. What if the distributor over stocks supply, since last quarter there was a discount. The same strategy won't work this quarter.

Option E explains the Flaw perfectly :)
_________________

Click +1 Kudos if my post helped...

Amazing Free video explanation for all Quant questions from OG 13 and much more http://www.gmatquantum.com/og13th/

GMAT Prep software What if scenarios gmat-prep-software-analysis-and-what-if-scenarios-146146.html

Director
Director
avatar
Joined: 17 Apr 2013
Posts: 524
Concentration: Entrepreneurship, Leadership
Schools: HBS '16
GMAT Date: 11-30-2013
GPA: 3.3
Followers: 3

Kudos [?]: 36 [0], given: 245

CAT Tests
Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink] New post 25 Jun 2014, 14:57
The secret in solving Critical reasoning questions lies in identifying correct conclusion, if you inculcate such habit you will sail more confidently with no ambiguity at all.
_________________

Like my post Send me a Kudos :) It is a Good manner.

Re: An eyeglass manufacturer tried to boost sales for the summer   [#permalink] 25 Jun 2014, 14:57
    Similar topics Author Replies Last post
Similar
Topics:
5 Experts publish their posts in the topic Sales of a new chocolate bar were considerably boosted thevenus 15 08 Oct 2012, 20:30
Since the 1930 s aircraft manufacturers have tried to build Ankit04041987 3 20 Aug 2012, 21:45
13 Since the 1930 s aircraft manufacturers have tried to build Ankit04041987 15 10 Jun 2012, 11:58
2 Since the 1930 s aircraft manufacturers have tried to build tuanquang269 11 17 Nov 2011, 07:57
Sales of United States manufactured goods to nzgmat 2 24 Oct 2004, 16:13
Display posts from previous: Sort by

An eyeglass manufacturer tried to boost sales for the summer

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.