Paper&Print is a chain of British stores selling : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 21 Jan 2017, 19:35

### 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

# Paper&Print is a chain of British stores selling

Author Message
TAGS:

### Hide Tags

Senior Manager
Joined: 07 Jan 2008
Posts: 412
Followers: 3

Kudos [?]: 217 [0], given: 0

Paper&Print is a chain of British stores selling [#permalink]

### Show Tags

14 Jun 2008, 01:16
1
This post was
BOOKMARKED
00:00

Difficulty:

15% (low)

Question Stats:

82% (02:27) correct 18% (01:55) wrong based on 542 sessions

### HideShow timer Statistics

Paper&Print is a chain of British stores selling magazines, books, and stationery products. In Britain, magazines' retail prices are set by publishers, and the retailer's share of a magazine's retail price is 25 percent. Since Paper&Print's margin on books and stationery products is much higher, the chain's management plans to devote more of its stores' shelf space to books and stationery products and reduce the number of magazine titles that its stores carry.

Which of the following, if true, most strongly argues that the plan, if put into effect, will not increase Paper&Print's profits?

(A) Recently magazine publishers, seeking to increase share in competitive sectors of the market, have been competitively cutting the retail prices of some of the largest circulation magazines.
(B) In market research surveys, few consumers identify Paper&Print as a book or stationery store but many recognize and value the broad range of magazines it carries.
(C) The publisher's share of a magazine's retail price is 50 percent, and the publisher also retains all of the magazine's advertising revenue.
(D) Consumers who subscribe to a magazine generally pay less per issue than they would if they bought the magazine through a retail outlet such as Paper&Print.
(E) Some of Paper& Print's locations are in small towns and represent the only retail outlet for books within the community.
[Reveal] Spoiler: OA
If you have any questions
New!
Manager
Joined: 28 Feb 2011
Posts: 90
Followers: 0

Kudos [?]: 41 [1] , given: 2

### Show Tags

28 Jun 2011, 08:36
1
KUDOS
B..easy
_________________

Fight till you succeed like a gladiator..or doom your life which can be invincible

Senior Manager
Joined: 13 Aug 2012
Posts: 464
Concentration: Marketing, Finance
GMAT 1: Q V0
GPA: 3.23
Followers: 25

Kudos [?]: 433 [1] , given: 11

Re: Paper&Print is a chain of British stores selling [#permalink]

### Show Tags

26 Jan 2013, 00:41
1
KUDOS
Plan to increase profits: Devote more shelf to books and stationery ; Remove magazines

(A) Recently magazine publishers, seeking to increase share in competitive sectors of the market, have been competitively cutting the retail prices of some of the largest circulation magazines.
Magazines have gone cheaper = means less revenue for the store. We are looking for a WEAKENER of the plan.

(B) In market research surveys, few consumers identify Paper&Print as a book or stationery store but many recognize and value the broad range of magazines it carries.
Trademark of the store is the magazines... This made them pretty known... This is WEAKENING the plan...

(C) The publisher's share of a magazine's retail price is 50 percent, and the publisher also retains all of the magazine's advertising revenue.
the store gets 25% that's all that matters... this is neutral...

(D) Consumers who subscribe to a magazine generally pay less per issue than they would if they bought the magazine through a retail outlet such as Paper&Print.
Cheaper at Paper&Print = means the plan is a good thing = NOT A WEAKENER...

(E) Some of Paper& Print's locations are in small towns and represent the only retail outlet for books within the community.[/quote]
Known for books = STRENGTHENS the PLAN

_________________

Impossible is nothing to God.

Director
Joined: 05 Jan 2008
Posts: 701
Followers: 5

Kudos [?]: 416 [0], given: 0

### Show Tags

14 Jun 2008, 01:26
B for me

Which of the following, if true, most strongly argues that the plan, if put into effect, will not increase Paper&Print's profits?

A: Recently magazine publishers, seeking to increase share in competitive sectors of the market, have been competitively cutting the retail prices of some of the largest circulation magazines. -> this will reduce the profits for all the retailers, and irrelevant for the given context

B: In market research surveys, few consumers identify Paper&Print as a book or stationery store but many recognize and value the broad range of magazines it carries.-> sounds good. More consumers identify and buy magazines from P&P than they buy books/stationery thus profits/margins would be less if magazines are reduced.

C: The publisher's share of a magazine's retail price is 50 percent, and the publisher also retains all of the magazine's advertising revenue.-> irrelevant

D: Consumers who subscribe to a magazine generally pay less per issue than they would if they bought the magazine through a retail outlet such as Paper&Print.-> irrelevant,eliminate it

E: Some of Paper& Print's locations are in small towns and represent the only retail outlet for books within the community. ->this strengthens the idea but "some" eliminates the choice
_________________

Persistence+Patience+Persistence+Patience=G...O...A...L

Manager
Joined: 14 Jun 2007
Posts: 170
Location: Vienna, Austria
Followers: 1

Kudos [?]: 7 [0], given: 0

### Show Tags

14 Jun 2008, 06:12
i concur with prasannar!
SVP
Joined: 28 Dec 2005
Posts: 1575
Followers: 3

Kudos [?]: 147 [0], given: 2

### Show Tags

14 Jun 2008, 06:48
i went for B as well. If consumers dont know that Paper&Print offer stationary products, then they will not shop there for said products ... which means that even if Paper&Print devoted the whole store to stationary products, if no one is buying it, rev wont increase.
Senior Manager
Joined: 07 Jan 2008
Posts: 412
Followers: 3

Kudos [?]: 217 [0], given: 0

### Show Tags

17 Jun 2008, 21:50
OA is B, thanks!
Senior Manager
Joined: 10 Mar 2008
Posts: 371
Followers: 5

Kudos [?]: 259 [0], given: 0

### Show Tags

18 Jun 2008, 02:04
Done deal - B!!

Lexis - what is the source of this question? Thanks mate!
Manager
Joined: 28 Apr 2008
Posts: 133
Followers: 2

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

### Show Tags

18 Jun 2008, 02:28
What if they sell more magazines and less books and stationary products. B clearly raises this issue.

lexis wrote:
Paper&Print is a chain of British stores selling magazines, books, and stationery products. In Britain, magazines' retail prices are set by publishers, and the retailer's share of a magazine's retail price is 25 percent. Since Paper&Print's margin on books and stationery products is much higher, the chain's management plans to devote more of its stores' shelf space to books and stationery products and reduce the number of magazine titles that its stores carry.

Which of the following, if true, most strongly argues that the plan, if put into effect, will not increase Paper&Print's profits?

A: Recently magazine publishers, seeking to increase share in competitive sectors of the market, have been competitively cutting the retail prices of some of the largest circulation magazines.
B: In market research surveys, few consumers identify Paper&Print as a book or stationery store but many recognize and value the broad range of magazines it carries.
C: The publisher's share of a magazine's retail price is 50 percent, and the publisher also retains all of the magazine's advertising revenue.
D: Consumers who subscribe to a magazine generally pay less per issue than they would if they bought the magazine through a retail outlet such as Paper&Print.
E: Some of Paper& Print's locations are in small towns and represent the only retail outlet for books within the community.
Manager
Joined: 16 Mar 2008
Posts: 70
Followers: 1

Kudos [?]: 7 [0], given: 0

### Show Tags

18 Jun 2008, 03:03
B for me too
Manager
Joined: 21 Mar 2008
Posts: 244
Followers: 3

Kudos [?]: 30 [0], given: 0

### Show Tags

18 Jun 2008, 07:20
B for me
Senior Manager
Joined: 07 Jan 2008
Posts: 412
Followers: 3

Kudos [?]: 217 [0], given: 0

### Show Tags

18 Jun 2008, 12:09
vksunder wrote:
Done deal - B!!

Lexis - what is the source of this question? Thanks mate!

GMAT actual paper test
Senior Manager
Joined: 10 Mar 2008
Posts: 371
Followers: 5

Kudos [?]: 259 [0], given: 0

### Show Tags

18 Jun 2008, 12:30
Thanks mate!
Manager
Joined: 16 Apr 2008
Posts: 92
Followers: 1

Kudos [?]: 16 [0], given: 7

### Show Tags

24 Jun 2010, 10:40
Nice question, B for me. Thanks for the explanation prasannar .
Manager
Joined: 24 Dec 2009
Posts: 224
Followers: 2

Kudos [?]: 39 [0], given: 3

### Show Tags

24 Jun 2010, 12:26
Lil bit easy !!
Senior Manager
Joined: 25 Feb 2010
Posts: 481
Followers: 4

Kudos [?]: 84 [0], given: 10

### Show Tags

24 Jun 2010, 12:26
Good one!!! nice explanation guys
_________________

GGG (Gym / GMAT / Girl) -- Be Serious

Its your duty to post OA afterwards; some one must be waiting for that...

Director
Joined: 21 Dec 2009
Posts: 591
Concentration: Entrepreneurship, Finance
Followers: 18

Kudos [?]: 662 [0], given: 20

### Show Tags

27 Jun 2010, 14:10
B is clearly the winner: if no one (or just a few) buys your merchandise, then you run at a loss- that's what B is saying.
_________________

KUDOS me if you feel my contribution has helped you.

Manager
Joined: 11 Feb 2011
Posts: 80
Followers: 1

Kudos [?]: 2 [0], given: 0

### Show Tags

28 Jun 2011, 09:14
Intern
Joined: 02 Nov 2009
Posts: 21
Schools: ISB
Followers: 0

Kudos [?]: 0 [0], given: 2

### Show Tags

28 Jun 2011, 12:04
agree with b
Manager
Joined: 01 Jan 2011
Posts: 78
Followers: 0

Kudos [?]: 0 [0], given: 2

### Show Tags

29 Jun 2011, 05:19
B for me

Posted from my mobile device
_________________

_________________________
Try and you will succeed !

Re: CR: Paper&Print   [#permalink] 29 Jun 2011, 05:19

Go to page    1   2    Next  [ 29 posts ]

Similar topics Replies Last post
Similar
Topics:
Advanced CR: Paper & Print is a chain of British stores 2 02 Jul 2015, 10:45
Advanced CR: Paper & Print is a chain of British stores 1 02 Jul 2015, 10:44
5 FastMart, a convenience store chain, is planning to add 10 01 Jan 2010, 02:20
1 Child s World, a chain of toy stores, has relied on a 12 30 Dec 2009, 14:21
FastMart, a convenience store chain, is planning to add 4 20 Dec 2007, 15:44
Display posts from previous: Sort by