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

It is currently 29 Apr 2016, 11:18
GMAT Club Tests

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

In January 1992, the Sylvanic Exterminator Service of Salem

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

2 KUDOS received
Manager
Manager
avatar
Joined: 23 Jan 2011
Posts: 127
Followers: 1

Kudos [?]: 49 [2] , given: 13

In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 13 Jul 2011, 06:14
2
This post received
KUDOS
5
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

53% (02:40) correct 47% (01:28) wrong based on 465 sessions

HideShow timer Statictics

In January 1992, the Sylvanic Exterminator Service of Salem County began a new service concentrating on the removal of bats, rats, and mice. Revenue increased twofold by the end of the year. However, since 1991 more people in Salem County have been taking care of their extermination problems on their own, and the extermination industry’s revenues have been dropping because of it. Sylvanic Exterminator Service has reported no such loss in revenue.

Which one of the following statements, if true, would best explain the above paradox?


A]The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since.

B]In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998.

C]People would rather take care of the pest problems themselves because it is less expensive.

D]The bat, rat, and mouse populations of Salem County have increased significantly since 1991.

E] The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.
[Reveal] Spoiler: OA
Director
Director
avatar
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 707
Followers: 5

Kudos [?]: 136 [0], given: 37

Re: CR [#permalink]

Show Tags

New post 13 Jul 2011, 18:45
Clear E. Only other choice worth considering is D. However E is a clear winner as it explains the paradox.

Crick
1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 09 Feb 2011
Posts: 285
Concentration: General Management, Social Entrepreneurship
Schools: HBS '14 (A)
GMAT 1: 770 Q50 V47
Followers: 12

Kudos [?]: 161 [1] , given: 13

Re: CR [#permalink]

Show Tags

New post 13 Jul 2011, 21:07
1
This post received
KUDOS
1
This post was
BOOKMARKED
The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since. which means that the revenue hadnt actually doubled? But that is in contradiction with an assertion in the stem. incorrect
In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998. a debt will not really have any effect on revenues. and upgrading sprayers cannot explain how Sylvanic doubled its revenues, if people have started doing extermination themselves, then it will be a big leap to assume that just because Sylvanic has upgraded sprayers, people preferef it to other exterminators/ themselves

People would rather take care of the pest problems themselves because it is less expensive. that just gives a reason for an assertion in the stem. doesnt explains why Sylvanic's revenues are still high

The bat, rat, and mouse populations of Salem County have increased significantly since 1991. that might mean the need for more extermination, especially the kind which sylvanic started as a new service. howeevr do these two factors together say that this extermination was actually done by Sylvanic only? population has increased, sylvanic starts a service to control it - but that is no guarantee that people will hire sylvanic to do it- they can still continue to do it themselves

The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.this clearly mentions that this new service got Sylvanic extra revenues as compared to others, and compensated for the loss of revenue it faced (just like the industry) in other types of extermination because people started doing it themselves. this takes care of all the conditions of the argument and still explains the paradox
Manager
Manager
avatar
Joined: 27 Dec 2007
Posts: 75
Followers: 0

Kudos [?]: 23 [0], given: 1

Re: CR [#permalink]

Show Tags

New post 14 Jul 2011, 01:17
E is the only choice available which explains why there is no revenue loss for the company.
2 KUDOS received
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Joined: 23 Jul 2010
Posts: 526
Followers: 93

Kudos [?]: 739 [2] , given: 282

GMAT ToolKit User Premium Member
Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 14 Nov 2013, 03:54
2
This post received
KUDOS
Bumping for review and further discussion
New GmatClub project Click here

_________________

How to CHOOSE your Business School
Thanks = Kudos. Kudos are appreciated

Rules for posting on the verbal forum
When you post a question Pls. Provide its source & TAG your questions
Avoid posting from unreliable sources such as 1000 series.

Senior Manager
Senior Manager
avatar
Joined: 08 Apr 2012
Posts: 464
Followers: 1

Kudos [?]: 36 [0], given: 58

Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 19 Sep 2014, 07:35
The problem I see here with E is that if more people do their pest control on their own, and all other companies are experiencing losses, we still don't have an explanation as how the services are still making money....
Anyone help with that?
Manager
Manager
avatar
Joined: 10 Mar 2014
Posts: 231
Followers: 1

Kudos [?]: 52 [0], given: 13

Premium Member
Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 20 Jun 2015, 10:41
Chetangupta wrote:
In January 1992, the Sylvanic Exterminator Service of Salem County began a new service concentrating on the removal of bats, rats, and mice. Revenue increased twofold by the end of the year. However, since 1991 more people in Salem County have been taking care of their extermination problems on their own, and the extermination industry’s revenues have been dropping because of it. Sylvanic Exterminator Service has reported no such loss in revenue.

Which one of the following statements, if true, would best explain the above paradox?


A]The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since.

B]In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998.

C]People would rather take care of the pest problems themselves because it is less expensive.

D]The bat, rat, and mouse populations of Salem County have increased significantly since 1991.

E] The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.


mikemcgarry,

could you please provide your comments on this.
Intern
Intern
avatar
Joined: 17 Feb 2015
Posts: 9
Followers: 0

Kudos [?]: 1 [0], given: 29

Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 20 Jun 2015, 14:53
E doesn't mention anything about losses in revenue, E only talk about compensating losses. Loss in revenue vs profit and loss can be two different things, right?

Still confused. IMO D
Intern
Intern
User avatar
Joined: 05 Nov 2014
Posts: 42
Concentration: Marketing, International Business
Followers: 0

Kudos [?]: 45 [0], given: 15

Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 08 Jul 2015, 04:00
PathFinder007 wrote:
Chetangupta wrote:
In January 1992, the Sylvanic Exterminator Service of Salem County began a new service concentrating on the removal of bats, rats, and mice. Revenue increased twofold by the end of the year. However, since 1991 more people in Salem County have been taking care of their extermination problems on their own, and the extermination industry’s revenues have been dropping because of it. Sylvanic Exterminator Service has reported no such loss in revenue.

Which one of the following statements, if true, would best explain the above paradox?


A]The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since.

B]In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998.

C]People would rather take care of the pest problems themselves because it is less expensive.

D]The bat, rat, and mouse populations of Salem County have increased significantly since 1991.

E] The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.


mikemcgarry,

could you please provide your comments on this.





A. No. Careful bookkeeping doesn't necessarily explain why they're still making money.
B. No. However effective their machinery is, they might still be losing money to the do-it-yourself crowd.
C. No. This still doesn't explain why Sylvanic kept making the same amount of money.
D. No. Close, but the argument indicates that people could be getting rid of these pests without the help of professionals.
E. Yes. Sylvanic has compensated for the potential loss of revenue by offering a different service.

Hope this helps!
_________________

Kudos = Thanks

"Yeah, you can get a nickel for boosting Starfall, but jacking Heal's a ten-day stint in county.
Now lifting Faerie Fire, they just let you go for that — it's not even worth the paperwork.
But Reincarnation, man! That'll get you life!"

Manager
Manager
avatar
Joined: 30 Oct 2010
Posts: 52
Followers: 1

Kudos [?]: 19 [0], given: 23

GMAT ToolKit User Premium Member Reviews Badge
Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 16 Nov 2015, 09:03
rohitt911 wrote:
E doesn't mention anything about losses in revenue, E only talk about compensating losses. Loss in revenue vs profit and loss can be two different things, right?

Still confused. IMO D


Hi Rohit,

If D is true then all exterminator services (including Sylvanic Exterminator Service) should make money but the passage clearly states that the exterminator services
as an industry isnt doing well.The exception here is Sylvanic Exterminator Service,which means it should be doing something different from the ordinary.A different reason and
not a common reason( as explained in D) is the cause behind Sylvanic Exterminator Service success

Hope this helps
Intern
Intern
avatar
Joined: 03 Feb 2014
Posts: 3
Followers: 0

Kudos [?]: 0 [0], given: 5

GMAT ToolKit User CAT Tests
Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 24 Apr 2016, 23:55
IMO E.

Prethink - Something that helps Slyvanic to prevent its losses.could be something to do with it's new service.

A]The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since. -- bookkeeping nothing to do with maintaining the revenue . NO

B]In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998. --- debt nothing to do with maintaining the revenue . NO

C]People would rather take care of the pest problems themselves because it is less expensive. --- this hurts the argument instead. NO

D]The bat, rat, and mouse populations of Salem County have increased significantly since 1991. --- ok . population increased but whether ppl contacted Sylvanic is not mentioned. NO

E] The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services. --- ok . cool so this new service is preventing the loss for Sylvanic . YES
Intern
Intern
avatar
Joined: 03 Apr 2016
Posts: 10
Followers: 0

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

Re: In January 1992, the Sylvanic Exterminator Service of Salem [#permalink]

Show Tags

New post 25 Apr 2016, 06:57
In January 1992, the Sylvanic Exterminator Service of Salem County began a new service concentrating on the removal of bats, rats, and mice. Revenue increased twofold by the end of the year. However, since 1991 more people in Salem County have been taking care of their extermination problems on their own, and the extermination industry’s revenues have been dropping because of it. Sylvanic Exterminator Service has reported no such loss in revenue.

Which one of the following statements, if true, would best explain the above paradox?


A]The Sylvanic Exterminator Service was audited in 1992 and has had to be extremely careful with its bookkeeping ever since.
Doesn't explain, actually makes it even more confusing since that means their financials are perfectly fine.

B]In 1990, Sylvanic upgraded all of its poison sprayers, incurring a debt which will not be paid off until 1998.
Incurring debt has nothing to do with revenue in this case

C]People would rather take care of the pest problems themselves because it is less expensive. \
Still doesn't explain why SES has reported no loss in revenue, but does explain why the extermination industry revenues have dropped

D]The bat, rat, and mouse populations of Salem County have increased significantly since 1991.
So this explains why SES has had not decrease in revenue despite people wanting to exterminate on their own, but does NOT explain why the industry has dropped

E] The Sylvanic Exterminator Service’s new pest service has compensated for the losses it has been experiencing in the rest of its services.
This explains why SES's revenue has not decreased. It implies that SES's other service is losing money, but is counteracted by a new business service
Re: In January 1992, the Sylvanic Exterminator Service of Salem   [#permalink] 25 Apr 2016, 06:57
    Similar topics Author Replies Last post
Similar
Topics:
40 Experts publish their posts in the topic In 1992 outlaw fishing boats began illegally harvesting bsv180985 19 08 Dec 2009, 11:37
1 In 1992, a major newspaper circulated throughout North reply2spg 12 23 Feb 2009, 20:16
In 1992, there were over 250 rescues of mountain climbers, eyunni 7 19 Nov 2007, 15:00
In 1992 outlaw fishing boats began illegally harvesting 12345678 1 01 Oct 2007, 08:07
In 1992 outlaw fishing boats began illegally harvesting Jamesk486 3 01 Jun 2007, 09:14
Display posts from previous: Sort by

In January 1992, the Sylvanic Exterminator Service of Salem

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| 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®.