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Hollywood restaurant is replacing some of its standard

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Intern
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Hollywood restaurant is replacing some of its standard [#permalink] New post 31 Oct 2012, 21:35
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A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

80% (02:02) correct 20% (01:28) wrong based on 53 sessions
Hollywood restaurant is replacing some of its standard tables with tall tables and stools. The restaurant already fills every available seat during its operating hours, and the change in seating arrangements will not result in an increase in the restaurant's seating capacity. Nonetheless, the restaurant's management expects revenue to increase as a result of the seating change without any concurrent change in menu, prices or operating hours.

Which of the following, if true, provides the best reason for the expectation?

(A)

One of the taller tables takes up less floor space than one of the standard tables.
(B)

Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables.
(C)

Since the restaurant will replace only some of its standard tables, it can continue to accommodate customers who do not care for the taller tables.
(D)

Few diners are likely to avoid the restaurant because of the new seating arrangement.
(E)

The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense.

Can you provide some guidance as to how to identify the correct answer? I couldn't see any of the answer choice which necessarily resulted in an increase in revenue.

Many thanks to you.
[Reveal] Spoiler: OA
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Re: Hollywood restaurant is replacing some of its standard table [#permalink] New post 31 Oct 2012, 22:03
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This looks like a paradox question. For this kind of question you're looking to identify a missing link or info that will correct the gap between the facts and the conclusion.

Facts are:
1) Tall tables and stools are replacing standard tables.
2) No other changes to seats, menus, etc.
Conclusion: All things being equal before and after change produce more profit.

Hm, so since this doesn't flow together you're looking for the answer that solve the question "Hows is this conclusion possible?

In this question, in particular, we're looking for a positive outcome (higher profits), so the answer choise that supports this will be the correct one.

A) Looks irrelevant. Taking less space does nothing to bring more revenue, since there is no other table or stool to occupy the vacant space. (this is just an example and not necessarily the case)
B) This answer choice looks promising. It says that diners take less time to finish their mean and go, which means that those tables are readily available sooner than they previously used to be. Serving more people within less amount of time guarantees profits at a higher rate, which favors the conclusion.
C) Bears no change to the conclusion that profit will be higher. I think it's also out of scope because it only talks about a small group of the customers, those that do not care about the change in the seating accommodations.
D) This weakens the conclusion, which we try to strengthen. Fewer customers means less revenue -> less profit.
E) If not worse, this only says that the change made has no positive or negative impact on the profits generated.

Hence, B.
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Re: Hollywood restaurant is replacing some of its standard table [#permalink] New post 01 Nov 2012, 04:43
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Long story told short.
B) If diners finish their meal earlier (on the stools), they will leave earlier, clearing space for other people to come and spend money. Thats how profits increase after the change :)
Re: Hollywood restaurant is replacing some of its standard table   [#permalink] 01 Nov 2012, 04:43
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