asaar wrote:
The owner of a retail electronics store has decided to no longer open his store on Sundays. For the past 2 years, the store averaged $925 in total revenue on Sundays on which it was open, while the average expense for keeping the store open on a Sunday was $1,100.
Which of the following, if true, would most seriously call into question the store owner's reasoning in deciding to no longer open his store on Sundays?
A. The store's customers frequently order items from the store's website after visiting the store in person.
B. The electronics store generates less profit on Mondays than on Sundays.
C. On five Sundays during the past year, the electronics store generated profits of between $500 and $1,000.
D. Most analysts of retail buying trends believe that the coming year will be a particularly good one for electronics stores that offer online shopping.
E. Sunday has traditionally been a good business day for electronics stores.
Best Option -> A
Here is the reason
Analysis of Stimulus: Owner will keep the store Closed on Sundays because on Sundays, Avg Revenue = $925 and Avg Expense = $1100.
Average Loss = $175
To weaken this plan, we have to provide the
BEST reason, among the options given, for why this is a bad idea.
A. The store's customers frequently order items from the store's website after visiting the store in person.
We can infer that if a customer visits the store on Sunday, he or she will purchase something from them online.B. The electronics store generates less profit on Mondays than on Sundays.
1. Owner is incurring a loss on Sundays. Less profits on Mondays will translate to even more losses on Monday.
2. Who is to say that the store stays open on Monday? There is no reason to assume that.
3. Last but not the least, this option is talking about electronics stores in general. Nothing in this option says that this particular store generates... C. On five Sundays during the past year, the electronics store generated profits of between $500 and $1,000.
Every year has about 53 Sundays. Therefore, data about 5 Sundays is not enough. Moreover, the 2 year average is a loss of $175.D. Most analysts of retail buying trends believe that the coming year will be a particularly good one for electronics stores that offer online shopping.
Out of Scope. Nobody is talking about the future trends.E. Sunday has traditionally been a good business day for electronics stores.
Sundays may have been a good business day traditionally but 2 year data revels that store has lost more money than it earned.