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Mechanicorp s newest product costs so little to make that it

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Mechanicorp s newest product costs so little to make that it [#permalink] New post 28 May 2005, 12:44
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A
B
C
D
E

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  5% (low)

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100% (01:01) correct 0% (00:00) wrong based on 1 sessions
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
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 [#permalink] New post 28 May 2005, 14:34
I think B

(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.
This is out because this information has already been provided in the stem thus it is redundant.

(B) Mechanicorp achieves large annual profits, despite small profits per unit sold, by means of a high volume of sales.
This had better be true otherwise, how does Mecanicorp manage to stay in business?

(C) Mechanicorp made a significant computational error in calculating the production costs for its newest product.
This is out of scope because the stem doesn’t mention anything about computational errors

(D) Mechanicorp’s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.
Out of scope

(E) Mechanicorp’s production processes are designed with the same ingenuity as are the products that the company makes
Out of scope. Stem doesn’t discuss anything about other products that the company makes or ingenuity.
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 [#permalink] New post 28 May 2005, 14:39
Agree with Folaa B it is
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 [#permalink] New post 28 May 2005, 17:09
One more for B
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 [#permalink] New post 28 May 2005, 17:18
"A"...directly supported by the stem that there is a dilemma on what Mechanicorp shud do
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 [#permalink] New post 28 May 2005, 17:34
Another A.
the whole argument is about the difficulties, actually i say it is a paradoxical condition, Machinecorp is going to face in the future.

B is not true because the passage talks nothing about large volume and large annual profits.
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 [#permalink] New post 28 May 2005, 20:41
I will pick A.

B is not right because high volume of sale is not guaranteed and I cannot see any inference indicate that from the stem.
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 [#permalink] New post 29 May 2005, 11:29
One more for A. Follows directly from the passage.

BCE are out of scope.
High volumes, computational errors, production processes all don't follow from the passage.
D is also out because nothing is mentioned about other devices.
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 [#permalink] New post 17 Jun 2005, 20:27
OA????????????
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 [#permalink] New post 17 Jun 2005, 21:56
I'd say A as that is the most obvious conclusion that can be drawn from the statements
  [#permalink] 17 Jun 2005, 21:56
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