Matter of selecting whats the main point : GMAT Verbal Section
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 20 Jan 2017, 06:23

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Matter of selecting whats the main point

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Manager
Joined: 07 Dec 2010
Posts: 116
Concentration: Marketing, General Management
Followers: 0

Kudos [?]: 31 [0], given: 12

Matter of selecting whats the main point [#permalink]

### Show Tags

08 Jun 2011, 11:02
Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year.
The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted.

Which of the following, if true, provides the strongest evidence that the magazine's profits are likely to decline
if the plan is instituted?
(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to
mail than a typical current issue would.
(B) The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity
of the magazine's articles than about a possible loss of the current high quality of its articles.
(C) Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription
price were increased.
(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same
amount on advertising per issue as they have in the past.
(E) Production costs for the magazine are expected to remain stable.
If you have any questions
you can ask an expert
New!
Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2021
Followers: 161

Kudos [?]: 1705 [0], given: 376

Re: Matter of selecting whats the main point [#permalink]

### Show Tags

08 Jun 2011, 11:58
ruturaj wrote:
Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year.
The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine's plan is instituted.

Which of the following, if true, provides the strongest evidence that the magazine's profits are likely to decline
if the plan is instituted?

We need to find how the plan will incur a loss:

(A) With the new postage rates, a typical issue under the proposed plan would cost about one-third more to
mail than a typical current issue would.
This should result in the profit, because the plan is suggesting a cut in the number of mails, reducing the mailing charges to half.

(B) The majority of the magazine's subscribers are less concerned about a possible reduction in the quantity
of the magazine's articles than about a possible loss of the current high quality of its articles.
Again this is an advantage, because the subscribers will not unsubscribe just on the account of the reduction in number of issues. Also, it is clearly mentioned in the passage that quality will not deteriorate.

(C) Many of the magazine's long-time subscribers would continue their subscriptions even if the subscription
price were increased.
Out of context. Subscription prices are not increased.

(D) Most of the advertisers that purchase advertising space in the magazine will continue to spend the same
amount on advertising per issue as they have in the past.
This is big drawback and will hurt the plan.
If an advertiser was spending $10K/issue and there were 12 issues before. The magazine was getting$120K/year as revenue.
If the plan was instituted,
the number of issues=6
Spending by the same advertiser/issue= $10K Total revenue per year=$60K
CORRECT.

(E) Production costs for the magazine are expected to remain stable.
Still a profit from saving on mailing charges.

ruturaj:
Please comply with the posting norms.

 ! All verbal questions must be posted in specific sub-forums as mentioned below:Critical Reasoning(CR): gmat-critical-reasoning-cr-139/Reading Comprehension(RC): gmat-reading-comprehension-rc-137/Sentence Correction(SC): gmat-sentence-correction-sc-138/Please DO NOT post any question in main Verbal forum:verbal-gmat-questions-11/

Also, it is always a good idea to search for a question before creating a thread with the same question.

Cooperation appreciated.
_________________
Re: Matter of selecting whats the main point   [#permalink] 08 Jun 2011, 11:58
Similar topics Replies Last post
Similar
Topics:
Must be True Vs Inference Vs Main Point/Conclusion Questions 2 07 Sep 2015, 01:50
1 GMAT verbal flopped in main exam.. Pls help 4 15 May 2015, 23:20
What is a Nine Point Circle? 1 10 Jan 2015, 12:08
5 Sentence correction's main topics revision document!! 9 25 Jul 2010, 06:51
1 I need help for "main idea" question 4 09 Mar 2009, 20:04
Display posts from previous: Sort by

# Matter of selecting whats the main point

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 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®.