It is currently Wed May 23, 2012 8:11 pm




   Post new topic Reply to topic      [ 16 posts ]  Bookmark and Share Oldest Best Reply
Author Message
TAGS:
  First-time computer buyers buying PXC home computers [#permalink]
New postPosted: Wed Jun 25, 2008 1:46 am 
Offline
Senior Manager
Senior Manager
User avatar

Joined: Mon Jan 07, 2008
Posts: 434
Followers: 1

Kudos (?): 45 (1), given: 0

GMAT Tests User
         00:00        
First-time computer buyers buying PXC home computers typically buy models that cost much less and have a smaller profit margin per computer than do PXC computers bought by people replacing their computers with more powerful models. Last year PXC's profits from computer sales were substantially higher than the previous year, although about the same number of PXC computers were sold and the prices and profit margins for each computer model that PXC sells remained unchanged.

If the statements above are true, which of the following is most strongly supported by them?

(A) PXC's competitors raised the prices on their computers last year, making PXC computers more attractive to first-time computer buyers.
(B) The number of people buying PXC computers who also bought PXC computer-related products, such as printers, was larger last year than the previous year.
(C) Among computer buyers who bought a PXC computer to replace their existing computer, the proportion who were replacing a computer made by a competitor of PXC was greater last year than the previous year.
(D) The proportion of PXC computers bought by first-time computer buyers was smaller last year than the previous year.
(E) PXC's production costs for its computers were lower last year than they had been the previous year.


  Profile  
 
  Re: First-time computer buyers buying PXC home computers [#permalink]
New postPosted: Sat Jan 28, 2012 2:44 pm 
Offline
Manager
Manager
User avatar

Joined: Tue Apr 19, 2011
Posts: 207
Schools: Booth,NUS,St.Gallon
Followers: 1

Kudos (?): 15 (1), given: 32

GMAT Tests User
D .Assume that the no of computers sold are the same for both the years .Since the propotion of the number of computers bought by first timers is less last year .It leads to a higher profit since more number of computers are bought by people who are replacing their old computers .

_________________
+1 if you like my explanation .Thanks :)


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Wed Jun 25, 2008 2:09 am 
Offline
Senior Manager
Senior Manager
User avatar

Joined: Wed Mar 14, 2007
Posts: 347
Location: Hungary
Followers: 1

Kudos (?): 11 (0), given: 2

GMAT Tests User
I think, the answer is D.


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Wed Jun 25, 2008 3:00 am 
Offline
Senior Manager
Senior Manager
User avatar

Joined: Wed Aug 15, 2007
Posts: 321
Followers: 2

Kudos (?): 38 (0), given: 0

GMAT Tests User
Straight D.


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Wed Jun 25, 2008 9:29 am 
Offline
Manager
Manager

Joined: Fri May 09, 2008
Posts: 112
Followers: 1

Kudos (?): 6 (0), given: 0

lexis wrote:
First-time computer buyers buying PXC home computers typically buy models that cost much less and have a smaller profit margin per computer than do PXC computers bought by people replacing their computers with more powerful models. Last year PXC's profits from computer sales were substantially higher than the previous year, although about the same number of PXC computers were sold and the prices and profit margins for each computer model that PXC sells remained unchanged.

If the statements above are true, which of the following is most strongly supported by them?

(A) PXC's competitors raised the prices on their computers last year, making PXC computers more attractive to first-time computer buyers.
- but the number of PXC computers sold remained constant.
(B) The number of people buying PXC computers who also bought PXC computer-related products, such as printers, was larger last year than the previous year.
- correct
(C) Among computer buyers who bought a PXC computer to replace their existing computer, the proportion who were replacing a computer made by a competitor of PXC was greater last year than the previous year.
- irrelevant
(D) The proportion of PXC computers bought by first-time computer buyers was smaller last year than the previous year.
- irrelevant
(E) PXC's production costs for its computers were lower last year than they had been the previous year.
- profit margins are constant, so this can't be the answer.

IMO (B) is correct.


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Wed Jun 25, 2008 12:18 pm 
Offline
Manager
Manager
User avatar

Joined: Mon Jul 31, 2006
Posts: 228
Followers: 0

Kudos (?): 12 (0), given: 0

GMAT Tests User
D would be my answer on this.

All the other variables remaining the same as in the year before, number of first time and second-time buyers would decide the final profit margins (lower or higher).

In this case the profits are higher hence number of second time buyers > number of first time buyers.


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Wed Jun 25, 2008 12:48 pm 
Offline
Manager
Manager

Joined: Wed May 14, 2008
Posts: 80
Followers: 1

Kudos (?): 4 (0), given: 0

D :)


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Wed Jun 25, 2008 12:56 pm 
Offline
Director
Director

Joined: Sat Jan 05, 2008
Posts: 788
Followers: 2

Kudos (?): 65 (0), given: 0

GMAT Tests User
D for me

The question clearly shows that of the bought computers the majority of the computers are replacements as only that way the profit margins would be more and thus D, D shows that the proportion of 1st time buyers is less


First-time computer buyers buying PXC home computers typically buy models that cost much less and have a smaller profit margin per computer than do PXC computers bought by people replacing their computers with more powerful models. Last year PXC's profits from computer sales were substantially higher than the previous year,
Quote:
although about the same number of PXC computers were sold
and the prices and profit margins for each computer model that PXC sells remained unchanged.

_________________
Persistence+Patience+Persistence+Patience=G...O...A...L


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Wed Jun 25, 2008 10:08 pm 
Offline
Senior Manager
Senior Manager
User avatar

Joined: Mon Jan 07, 2008
Posts: 434
Followers: 1

Kudos (?): 45 (0), given: 0

GMAT Tests User
D is OA!


  Profile  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Sun Oct 09, 2011 2:23 am 
Offline
Manager
Manager
User avatar

Joined: Thu Feb 03, 2011
Posts: 99
Location: India
Concentration: Finance, Marketing
GMAT 1: Q V
GPA: 3.75
Followers: 1

Kudos (?): 14 (0), given: 6

it was straightforward D...
wats the level of this question


  Profile E-mail  
 
  Re: CR: PXC computer [#permalink]
New postPosted: Mon Jan 16, 2012 7:39 am 
Offline
Senior Manager
Senior Manager

Joined: Fri Nov 25, 2011
Posts: 268
Location: India
Concentration: Technology, General Management
GPA: 3.95
WE: Information Technology (Computer Software)
Followers: 3

Kudos (?): 16 (0), given: 20

gmatcrook wrote:
D would be my answer on this.

All the other variables remaining the same as in the year before, number of first time and second-time buyers would decide the final profit margins (lower or higher).

In this case the profits are higher hence number of second time buyers > number of first time buyers.


I also agree with D.

But C is also a strong contender because it also tells us that there are more no. of sales of costly computers. But, we can eliminate this because the argument uses the word 'TYPICALLY' in the first statement, which means even first time buyers are also buying costly computers. This fact is reflected only in D but not in C.

_________________
-------------------------
-Aravind Chembeti


  Profile E-mail  
 
  Re: First-time computer buyers buying PXC home computers [#permalink]
New postPosted: Mon Jan 16, 2012 8:42 am 
Offline
Senior Manager
Senior Manager

Joined: Fri Aug 13, 2010
Posts: 345
Followers: 1

Kudos (?): 3 (0), given: 1

GMAT Tests User
+1 for D


  Profile  
 
  Re: First-time computer buyers buying PXC home computers [#permalink]
New postPosted: Sun Feb 05, 2012 9:26 pm 
Offline
Manager
Manager

Status: MBA Aspirant
Joined: Sat Jun 12, 2010
Posts: 200
Location: India
Concentration: Finance, International Business
WE: Information Technology (Investment Banking)
Followers: 2

Kudos (?): 13 (0), given: 1

GMAT Tests User
I got my answer as C, but looks like it is wrong here :(


  Profile  
 
  Re: First-time computer buyers buying PXC home computers [#permalink]
New postPosted: Mon Feb 13, 2012 1:56 am 
Offline
Senior Manager
Senior Manager
User avatar

Status: May The Force Be With Me (D-DAY 15 May 2012)
Joined: Fri Jan 06, 2012
Posts: 311
Location: India
Followers: 1

Kudos (?): 26 (0), given: 16

+1 D

_________________
Giving +1 kudos is a better way of saying 'Thank You'.


  Profile  
 
  Re: First-time computer buyers buying PXC home computers [#permalink]
New postPosted: Mon Feb 13, 2012 3:21 pm 
Offline
Intern
Intern

Joined: Mon Feb 13, 2012
Posts: 20
WE: Other (Transportation)
Followers: 0

Kudos (?): 5 (0), given: 14

Clear D for me, as well!! The truth is that I got confused with the difference between "last year" and "previous year". I thought it was the same. (Clearly not a native speaker!!)


  Profile  
 
  Re: First-time computer buyers buying PXC home computers [#permalink]
New postPosted: Wed Feb 15, 2012 7:22 am 
Offline
Manager
Manager

Joined: Sun Jan 22, 2012
Posts: 75
Concentration: General Management, Technology
GMAT 1: 570 Q39 V29
GPA: 2.83
Followers: 5

Kudos (?): 10 (0), given: 5

First-time computer buyers buying PXC home computers typically buy models that cost much less and have a smaller profit margin per computer than do PXC computers bought by people replacing their computers with more powerful models. Last year PXC's profits from computer sales were substantially higher than the previous year, although about the same number of PXC computers were sold and the prices and profit margins for each computer model that PXC sells remained unchanged.

If the statements above are true, which of the following is most strongly supported by them?

(A) PXC's competitors raised the prices on their computers last year, making PXC computers more attractive to first-time computer buyers.
- but the number of PXC computers sold remained constant so its not the correct option.
(B) The number of people buying PXC computers who also bought PXC computer-related products, such as printers, was larger last year than the previous year.
- not relevant question didnt speak about other products.
(C) Among computer buyers who bought a PXC computer to replace their existing computer, the proportion who were replacing a computer made by a competitor of PXC was greater last year than the previous year. --- this doesnt speak about the raise in profits of PXC
- irrelevant
(D) The proportion of PXC computers bought by first-time computer buyers was smaller last year than the previous year.
- since first time buyers are smaller the replacement buyers are more and the sales are constant the replacement sales resulted in more profits so correct answer.
(E) PXC's production costs for its computers were lower last year than they had been the previous year.
- profit margins are constant, so this can't be the answer.

_________________
Press +1 Kudos rather than saying thanks
which is more helpful infact..

Ill be posting good questions as many as I can...

Towards Success


  Profile  
 
Online
gmatclubot
Display posts from previous:  Sort by  

Critical Reasoning Resources

Best CR Discussions

Best Critical Reasoning shortcuts, notes, tips by monirjewel12
Critical Reasoning Question Directory Topic and Difficulty by bb11
GMAT Prep Critical Reasoning Collection by whiplash24117
The Bang, Bang CR Guide (A comprehensive guide w/ examples) by whiplash24117
Re: mold spores by TommyWallach4

CR Expert Advice

Post new topic Reply to topic  [ 16 posts ] 

 Similar topics   Author   Replies   Views   Last post 
computers

in GMAT Math Questions and Intellectual Discussions

joemama142000

16

599

Thu Feb 23, 2006 6:23 am

computer

in GMAT Math Questions and Intellectual Discussions

winter09

2

463

Fri Oct 10, 2008 12:09 pm

computer

in GMAT Math Questions and Intellectual Discussions

gorden

4

360

Tue Nov 11, 2008 4:54 pm

computer

in Verbal GMAT Questions

ritula

4

578

Sat Feb 07, 2009 3:41 am

Like in 2004, car sales to first-time buyers as often, if

in GMAT Sentence Correction (SC)

crejoc

8

925

Sat Aug 15, 2009 1:55 am





Who is online

Users browsing this forum: No registered users and 7 guests


Search for:
Jump to:





[ Mobile Version ] 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 GMAT (C) is a registered trademark of the Graduate Management Admission Council, and this site has neither been reviewed nor endorsed by GMAC.