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An eyeglass manufacturer tried to boost sales for the summer

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An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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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
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New post 04 May 2007, 13:38
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?
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New post 04 May 2007, 13:50
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...
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New post 04 May 2007, 15:04
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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.
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New post 04 May 2007, 23:42
Another E
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New post 05 May 2007, 00:54
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.
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New post 05 May 2007, 06:39
(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
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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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New post 24 Jul 2013, 08:37
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 :)
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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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New post 19 Jan 2015, 15:28
Although I got my answer correct, but I pre-assumed something different than given in the answer choice. Please check whether this my pre-assumption is also correct:

The consumers had a demand for eyeglasses such as goggles in summer, but that demand reduced in fall as that was not the season goggles are meant for.

Thanks and Regards
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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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New post 14 Apr 2016, 08:54
manufacture concludes that fall quarter will have the same results as summer quarter.
Assumption: Everything will remain the same in fall as in summer.

Something along the lines of - in fall something is different compared to summer will undermine the assumption.
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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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New post 14 Apr 2016, 10:58
B is a strengthener.
The ads will have affected final consumers buying from the resellers. Thus the stores sold well and will likely go for the blessed discount come fall.

B did not offer alternative cause as someone suggested.
Even if it did?
That's not what you are asked here.
But it didn't.

E said that the stores may not buy come fall cos they still got too many to sell.
The company's profit depends on the stores buying from them.

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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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New post 20 May 2016, 02:34
soxy_topacio wrote:
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.


This question is based on the flaw in which author assumes what has been true in the past would be true in the future as well. This is a universal flaw unless a premise is added in the argument saying that the conditions of the past and present are exactly similar. With this thought in mind we should only be searching for the choice which tells us that present scenario is different from past because of some reason. Also to speed up, read choice A and E first (this is personal approach). In this question option E tells how present scenario is different from past. so it is correct.
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Re: An eyeglass manufacturer tried to boost sales for the summer [#permalink]

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New post 24 May 2016, 04:26
in a "plan" argument , author plan to do something, our job is to find something which support or weaken the plan. this job is more simple than criticize an argument in which evidence and a conclusion are offered.

in short, this kind of argument is more easy, normally.

the most difficult job and the main job we have to do is to criticize the argument . if we focus on the criticization we can solve many types of questions, assumption question, weaken/strengthen questions, flaw question and evaluate questions of of which are based on criticization.

plan argument is more easily, normally.
Re: An eyeglass manufacturer tried to boost sales for the summer   [#permalink] 24 May 2016, 04:26
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