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Paper&Print is a chain of British stores selling

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Paper&Print is a chain of British stores selling [#permalink] New post 14 Jun 2008, 01:16
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

81% (02:24) correct 19% (01:58) wrong based on 361 sessions
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
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Re: CR: Paper&Print [#permalink] New post 28 Jun 2011, 08:36
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B..easy
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Re: Paper&Print is a chain of British stores selling [#permalink] New post 26 Jan 2013, 00:41
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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

Answer: B
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Re: CR: Paper&Print [#permalink] New post 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
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Re: CR: Paper&Print [#permalink] New post 14 Jun 2008, 06:12
i concur with prasannar!
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Re: CR: Paper&Print [#permalink] New post 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.
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Re: CR: Paper&Print [#permalink] New post 17 Jun 2008, 21:50
OA is B, thanks!
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Re: CR: Paper&Print [#permalink] New post 18 Jun 2008, 02:04
Done deal - B!!

Lexis - what is the source of this question? Thanks mate!
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Re: CR: Paper&Print [#permalink] New post 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.
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Re: CR: Paper&Print [#permalink] New post 18 Jun 2008, 03:03
B for me too
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Re: CR: Paper&Print [#permalink] New post 18 Jun 2008, 07:20
B for me
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Re: CR: Paper&Print [#permalink] New post 18 Jun 2008, 12:09
vksunder wrote:
Done deal - B!!

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



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Re: CR: Paper&Print [#permalink] New post 18 Jun 2008, 12:30
Thanks mate!
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Re: CR: Paper&Print [#permalink] New post 24 Jun 2010, 10:40
Nice question, B for me. Thanks for the explanation prasannar .
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Re: CR: Paper&Print [#permalink] New post 24 Jun 2010, 12:26
Answer is B.
Lil bit easy !!
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Re: CR: Paper&Print [#permalink] New post 24 Jun 2010, 12:26
Good one!!! nice explanation guys
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Re: CR: Paper&Print [#permalink] New post 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.
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Re: CR: Paper&Print [#permalink] New post 28 Jun 2011, 09:14
easy one...answer is B
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Re: CR: Paper&Print [#permalink] New post 28 Jun 2011, 12:04
agree with b
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Re: CR: Paper&Print [#permalink] New post 29 Jun 2011, 05:19
B for me

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