Hollywood restaurant is replacing some of its standard tables with tal : Critical Reasoning (CR)

betterscore

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Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

Updated on: 22 Nov 2018, 05:19

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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.

ID - CR03367

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Originally posted by betterscore on 07 Aug 2012, 14:17.
Last edited by Bunuel on 22 Nov 2018, 05:19, edited 1 time in total.

Renamed the topic and edited the question.

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egmat

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

Updated on: 08 May 2013, 19:26

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Expert Reply

Hi,

In this question, we need to find the best reason for the expectation.

Expectation: Revenue will increase

Constraints:

No change in menu, prices, or operating hours

No increase in seating capacity

Analysis of Option Statements

(A) One of the taller tables takes up less floor space than one of the standard tables. - Even if taller tables take less space, it is clearly given in the passage the seating capacity will not increase. So, there is advantage of less space occupying tables. Therefore, this does not provide a reason for increased revenues.

(B) Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables. - If this is true, then even with all the constraints, the restaurants will have more customers everyday. So, if previously, diners used to take 30 minutes, diners now take 20 minutes to eat. So, while in previous case, each table served 2 customers every hour, now every table serves 3 customers every hour. So, it provides a reason for increase in revenues. Correct.

(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. - Irrelevant

(D) Few diners are likely to avoid the restaurant because of the new seating arrangement. - This provides a reason as to why the revenues should not fall but it does not provide any reason for expectation for increased revenues.

(E) The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense. - We are concerned with revenues, not costs. Irrelevant.

Hope this helps.

Thanks,
Chiranjeev
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Originally posted by egmat on 08 May 2013, 09:56.
Last edited by egmat on 08 May 2013, 19:26, edited 1 time in total.

mojorising666

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

07 Aug 2012, 14:26

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B.

argument says that changing the seat pattern will increase revenue eventhough the number of seats will not increase.
B states a reason how this will be achieved.
people will take less time to eat their meals. Thus more people will visit the restaurant .Thus revenue will increase.

suppose previously in 1 hr 1 customer ate. now 2 will eat as customer wont linger on the food because of the seating. So more customers will eat in same amount of time.Thus more revenues.

Not a 700 level question.

B

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

07 Aug 2012, 14:30

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(A) One of the taller tables takes up less floor space than one of the standard tables.
"....change in seating arrangements will not result in an increase in the restaurant's seating capacity..." Incorrect

(B) Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables.
so , the standard table/new arrangement will attract more diners.

(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.
customers who do or do not care for the taller table is not under consideration.

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

(E) The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense.
expense is not under consideration.

deepen

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

07 Aug 2012, 15:08

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IMO- B.
A) One of the taller tables takes up less floor space than one of the standard tables.
I[color=#662d91]t won't increase the capacity of the res.[/color]
(B) Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables.
There will be more cycles of diners within the same operating hours, increasing the customers and in turn revenue.

(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.
not leading to customer increase
(D) Few diners are likely to avoid the restaurant because of the new seating arrangement.
going against the new arrangement
(E) The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense.
going in different direction.

stoy4o

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

31 Oct 2012, 23:03

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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.

VeritasPrepRon

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

08 May 2013, 12:00

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Expert Reply

Indeed A seems like a tempting choice until you reread the question and it specifically indicates that the number of seats will remain unchanged. In essence, no more patrons will enter the establishment, but there will be more available floorspace for... say going to the bathroom or whatever. Since there is no increase in the number of customers at any given time, the only way to increase revenue is to increase turnover. The same table will be occupied only for an hour instead of two hours. That will increase revenue even if there are never more than 100 customers in the restaurant at any given time.

B is thus the perfect answer.

Hope this helps!
-Ron

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EMPOWERgmatRichC

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

29 Jan 2015, 00:26

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Hi All,

In a CR, the conclusion gives you an end result that all of the other ideas must lead to. Here, we're told that replacing some standard tables with tall tables and stools will lead to an INCREASE IN EXPECTED REVENUE without anything else changing (every available seat is still filled, the menu/prices/hours will stay the same). We need an answer that would help to explain WHY the revenue would increase.

The correct answer offers a reason why more customers would be expected at the restaurant (remember that every seat gets filled with a customer).

Final Answer:

Show Spoiler

B

GMAT assassins aren't born, they're made,
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B

MAnkur

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

08 May 2019, 20:58

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Isn't the revenue equals total income minus the expenses/spents. In that case option E talks about an alternative that would save on the expenses thereby increasing the revenue. No proper reasoing is available in posts for eliminating option E. Further, option B as explained by Payal, kindly clarify more on the phrase "as long as diners seated at standard tables"

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HaileyCusimano

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

08 May 2019, 21:16

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MAnkur wrote:

Isn't the revenue equals total income minus the expenses/spents. In that case option E talks about an alternative that would save on the expenses thereby increasing the revenue. No proper reasoing is available in posts for eliminating option E. Further, option B as explained by Payal, kindly clarify more on the phrase "as long as diners seated at standard tables"

Hi MAnkur - happy to chime in and respond to this point!

Revenue refers to the total income received, irrespective of costs. Net income, or profit, are what we use to describe total income (or revenue) minus expenses. So, in this case, (E) is irrelevant to us here, as we're concerned with explaining the expected increase in revenue - not profit. Also, keep in mind, that they're expecting an increase - not just a lesser decrease, so (E) wouldn't hold much ground even if we were taking profit. That said, the revenue vs. profit distinction is an important one to keep in mind with questions like this one!

So, if we're looking for an explanation as to why revenue would increase despite no change in menu, prices, or hours of operation - we need some other explanation as to why the revenue (or total income) would be expected to increase. (B) does this for us, as it gives us reason why within the same pricing structure and hours of operation, we could expect revenue to increase - as total customer served could be expected to increase with a higher potential for turnover.

I hope this helps clarify!
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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

19 Dec 2019, 07:38

betterscore wrote:

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?
Restaurant's Expectation: Replacing standard tables with tall tables and stools will increase the restaurant's revenue even though the menu, prices, operating hours and number of seats will remain unchanged
Our Goal: To identify a reason that supports the restaurant's expectation and prove that it's planning is solid

(A) One of the taller tables takes up less floor space than one of the standard tables.
As stated at the start of the prompt, the restaurant is not planing to add new tables and will only replace the existing standard tables, and hence freeing up floor space does not help in understanding if the goal will be met. Plus, the question does not provide any correlation between free space and revenue

(B) Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables.
This option tells us that on any given day the restaurant will be able to serve more customers than before. And the reason for this is that customers seated on tall stools do not spend as much time as they would have spent if they were seated on standard stools. More customers would mean higher revenue

(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.
In order to provide the best explanation for the restaurant's claim we wish to analyze the behavior of those customers who use the taller tables/stools. Customers who do not care about taller tables do not help answer the question on whether the implementation of new taller tables/stools will increase revenue?

(D) Few diners are likely to avoid the restaurant because of the new seating arrangement.
This option weakens the argument by stating that this new implementation might backfire on certain customers. This option certainly does not explain how the new plan will boost revenue for the restaurant. In real life too, any change always comes with criticism

(E) The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense.
This option might be tricky as it brings up the 'cost' element.
1. But this option talks about one-time cost (initial investment). What if over a period of time the additional cost incurred would be covered and the restaurant start's making higher profits than before?
2. Also, if you ask the question that does this information on higher initial investment explain us whether the implementation of new taller tables/stools will increase revenue? Certainly not

ID - CR03367

Ans. B

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Nipungupta9081

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

03 Jan 2021, 12:07

betterscore wrote:

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.

ID - CR03367

Answer B

Option A - Going opposite of what's said in the premise ( X )

Option B - if people linger less => less time spent => more revenue because more people will be sitting.

Option C - Nothing said about this in the premise ( X )

Option D - Opposite ( X )

Option E - IRRELEVANT ( X )

G

CEdward

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

01 Feb 2021, 16:58

It's all about identifying what exactly is being said. The dilemma here is that management expects revenue to increase despite changes in the menu, prices, operating hours, or an increase in capacity. So there must be some other factor that would explain this.

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. X
This is trying to get at the fact that less floor space means the restaurant can accommodate more tables and hence drive revenues up that way. However, we already know that the seating capacity WILL NOT increase. OUT.

(B) Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables.
Correct. The missing link. Revenue is certainly influenced by time. Increased patron turnover means more dishes sold.

(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. X

This does not resolve the paradox. In fact, this says nothing new at all. We already know there will be a mix of standard + tall tables.

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

OK, so at the very least this means we could maintain revenue. But why would it increase despite all of those other factors staying constant?

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

Expenses =/ Revenue
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Monkeyking

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

28 Jul 2021, 02:43

betterscore wrote:

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.

ID - CR03367

premise: Hollywood restaurant is replacing some of its standard tables with tall tables and stools
premise: full seated during operating time, seating capacity remain the same
premise: without any concurrent change in menu, prices, or operating hours
contradiction: seating change leads revenue to increase
fallacy: fill in the gap between seating change and increased revenue, find an alternate reason;
A) irrelevant; less floor space doesnt change seat capacity, it cannot explain fallacy
B) seat change can make retaurant serve more clients since it is always full seated
C) the same as A）
D) the same as A)
E) the same as A)

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

20 Feb 2022, 00:02

Expert Reply

Official Explanation

Difficulty Level: Easy

Argument Construction

Situation

Hollywood restaurant is replacing some of its tables with taller tables and stools, and the management expects this will increase revenue, despite the fact that the restaurant already fills all of its available seats and that this change will not increase seating capacity. Furthermore, there will not be any change in menu, prices, or operating hours.

Reasoning

What would strongly support the management’s expectation? Since the new seating will not increase the restaurant’s seating capacity, the management’s expectations must be based on a belief that the change to taller tables and stools will somehow change diners’ behavior, perhaps by leading them to order more food, or to stay at their tables for a shorter time, thereby allowing the restaurant to serve more diners during its operating hours without increasing seating capacity. If diners seated at tall tables and on tall stools spend less time lingering over their dinners, then they will leave sooner, opening up the tables for more diners. Because the restaurant, before the change, already fills every available seat during its operating hours, it is reasonable to think that it will be able to serve more diners than it currently does, thereby selling more food and thus increasing revenue.

A. This would be relevant if we could infer from it that seating capacity will increase. However, the passage indicates that the new seating arrangement will not result in greater capacity.

B. Correct. Because the restaurant will be able to serve more meals during its operating hours, the restaurant’s revenue can be expected to increase.

C. This may indicate that the restaurant is less likely to alienate customers who do not care for tall tables and stools, but that only supports the claim that the restaurant will not lose customers and therefore lose revenue; it does not indicate that the restaurant will see revenue increase.

D. Again, this merely indicates that there will not be a loss—or much loss—of revenue, not that there will be an increase in revenue.

E. Less expensive tables will decrease the restaurant’s costs, but it will notincrease the restaurant’s revenue.

The correct answer is B.

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

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Re: Hollywood restaurant is replacing some of its standard tables with tal [#permalink]

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