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

 It is currently 26 Aug 2016, 22:12

### 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

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

# Mechanicorp s newest product costs so little to make that it

Author Message
TAGS:

### Hide Tags

Manager
Joined: 08 Jun 2011
Posts: 79
Schools: NUS
Followers: 0

Kudos [?]: 8 [0], given: 32

Mechanicorp s newest product costs so little to make that it [#permalink]

### Show Tags

18 Dec 2011, 06:17
00:00

Difficulty:

15% (low)

Question Stats:

83% (02:16) correct 17% (01:48) wrong based on 66 sessions

### HideShow timer Statistics

ssarkar wrote:
Mechanicorp’s newest product costs so little to make that it appears doubtful the company will be able to sell it without increasing the markup the company usually allows for profit: potential clients would simply not believe that something so inexpensive would really work. Yet Mechanicorp’s reputation is built on fair prices incorporating only modest profit margins.
The statements above, if true, most strongly support which of the following?
(A) Mechanicorp will encounter difficulties in trying to set a price for its newest product that will promote sales without threatening to compromise the company’s reputation.
(B) Mechanicorp achieves large annual profits, despite small profits per unit sold, by means of a high volume of sales.
(C) Mechanicorp made a significant computational error in calculating the production costs for its newest product.
(D) Mechanicorp’s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.
(E) Mechanicorp’s production processes are designed with the same ingenuity as are the products that the company makes.

+1 for A as the M's client will loose the faith in its extremely cheap product,M cannot increase the price of the product as its reputation is based on fair price fixing of the products.
[Reveal] Spoiler: OA
Manager
Joined: 25 May 2011
Posts: 157
Followers: 2

Kudos [?]: 56 [0], given: 71

### Show Tags

18 Dec 2011, 06:25
Based on the question, we should make conclusion from the stimulus's premises.
premise 1: Cost of new product is so too little to increase the markup
premise 2: potential clients would simply not believe that something so inexpensive would really work
premise 3: Mechanicorp’s reputation is built on fair prices incorporating only modest profit margins

we should choose the answer whose words are supported by these premises.

A
BSchool Forum Moderator
Status: Flying over the cloud!
Joined: 17 Aug 2011
Posts: 913
Location: Viet Nam
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 70

Kudos [?]: 531 [0], given: 44

### Show Tags

18 Dec 2011, 08:08
A
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Manager
Joined: 07 Aug 2011
Posts: 186
Location: United States
GMAT 1: 690 Q48 V37
Followers: 3

Kudos [?]: 23 [0], given: 6

### Show Tags

26 Dec 2011, 10:41
Senior Manager
Joined: 12 Oct 2011
Posts: 272
Followers: 0

Kudos [?]: 41 [0], given: 110

### Show Tags

27 Dec 2011, 03:05
A is the only answer which connects all the premises and stays within the scope.
Director
Status: Enjoying the GMAT journey....
Joined: 26 Aug 2011
Posts: 735
Location: India
GMAT 1: 620 Q49 V24
Followers: 70

Kudos [?]: 463 [0], given: 264

### Show Tags

27 Dec 2011, 10:49
only possible ans is A
_________________

Fire the final bullet only when you are constantly hitting the Bull's eye, till then KEEP PRACTICING.

A WAY TO INCREASE FROM QUANT 35-40 TO 47 : http://gmatclub.com/forum/a-way-to-increase-from-q35-40-to-q-138750.html

Q 47/48 To Q 50 + http://gmatclub.com/forum/the-final-climb-quest-for-q-50-from-q47-129441.html#p1064367

Three good RC strategies http://gmatclub.com/forum/three-different-strategies-for-attacking-rc-127287.html

Re: 1000 cr 19.2   [#permalink] 27 Dec 2011, 10:49
Similar topics Replies Last post
Similar
Topics:
16 Mechanicorp s newest product costs so little to make that it 8 05 Jan 2011, 10:03
Mechanicorp s newest product costs so little to make that it 11 19 Mar 2009, 00:29
4 Mechanicorp s newest product costs so little to make that it 13 10 Sep 2008, 23:30
1 Mechanicorp s newest product costs so little to make that it 7 10 Jan 2008, 07:39
Mechanicorp s newest product costs so little to make that it 8 01 Nov 2006, 17:06
Display posts from previous: Sort by