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Director
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Printwell s Ink Jet Division manufactures ink-jet printers [#permalink]
12 Jun 2005, 20:38
Question Stats:
100% (02:59) correct
0% (00:00) wrong based on 0 sessions
Printwell’s Ink Jet Division manufactures ink-jet printers and the ink cartridges they use. Sales of its ink-jet printers have increased. Monthly revenues from those sales, however, have not increased, because competition has forced Printwell to cut the prices of its printers. Unfortunately, Printwell has been unable to bring down the cost of manufacturing a printer. Thus, despite the increase in printer sales, the Ink Jet Division must be providing the company with much smaller than it used to. Which of the following, if true, most seriously weakens the argument? A. Ink-jet printers in regular use frequently need new ink cartridges, and Printwell’s printers only accept Printwell’s ink cartridges. B. Unlike some competing companies, Printwell sells all of its printers through retailers, and these retailers’ costs account for a sizable proportion of the printers’ ultimate retail price. C. Some printer manufacturers have been forced to reduce the sale price of their ink-jet printers even more than Printwell has. D. In the past year, no competing manufacturer of ink-jet printers has had as great an increase in unit sales of printers as Printwell has. E. In the past year, sales of Printwell’s ink-jet printers have increased more than sales of any other type of printer made by Printwell.
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Director
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A. they can also make money on cartriges
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Senior Manager
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I would say A too
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Manager
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A for me also
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SVP
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Also go eith A, however there is not enough evidence to weaken the argument.
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Senior Manager
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One more for A.
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VP
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A.......
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Director
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(A) too, but not too strong to weaken.
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Senior Manager
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Printwell’s Ink Jet Division manufactures ink-jet printers and the ink cartridges they use. Sales of its ink-jet printers have increased. Monthly revenues from those sales, however, have not increased, because competition has forced Printwell to cut the prices of its printers. Unfortunately, Printwell has been unable to bring down the cost of manufacturing a printer. Thus, despite the increase in printer sales, the Ink Jet Division must be providing the company with much smaller profits than it used to.
Which of the following, if true, most seriously weakens the argument?
( A ) Ink-jet printers in regular use frequently need new ink cartridges, and Printwell’s printers only accept Printwell’s ink cartridges.
( B ) Unlike some competing companies, Printwell sells all of its printers through retailers, and these retailers’ costs account for a sizable proportion of the printers’ ultimate retail price.
( C ) Some printer manufacturers have been forced to reduce the sale price of their ink-jet printers even more than Printwell has.
( D ) In the past year, no competing manufacturer of ink-jet printers has had as great an increase in unit sales of printers as Printwell has.
( E ) In the past year, sales of Printwell’s ink-jet printers have increased more than sales of any other type of printer made by Printwell.
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Director
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Re: CR - Printwell [#permalink]
17 Dec 2006, 09:28
I will go with A. Given that we don't know how much it costs to manufacture the ink cartriges, A may not be the right reasoning, but none of the other choices seem appropriate either.
anindyat wrote: Printwell’s Ink Jet Division manufactures ink-jet printers and the ink cartridges they use. Sales of its ink-jet printers have increased. Monthly revenues from those sales, however, have not increased, because competition has forced Printwell to cut the prices of its printers. Unfortunately, Printwell has been unable to bring down the cost of manufacturing a printer. Thus, despite the increase in printer sales, the Ink Jet Division must be providing the company with much smaller profits than it used to. Which of the following, if true, most seriously weakens the argument?
( A ) Ink-jet printers in regular use frequently need new ink cartridges, and Printwell’s printers only accept Printwell’s ink cartridges. ( B ) Unlike some competing companies, Printwell sells all of its printers through retailers, and these retailers’ costs account for a sizable proportion of the printers’ ultimate retail price. The conclusion about lower profits may not have anything to do with this, because retail cost seems to be afixed cost. ( C ) Some printer manufacturers have been forced to reduce the sale price of their ink-jet printers even more than Printwell has. The argument is only about Printwell, not others. ( D ) In the past year, no competing manufacturer of ink-jet printers has had as great an increase in unit sales of printers as Printwell has. Same as C ( E ) In the past year, sales of Printwell’s ink-jet printers have increased more than sales of any other type of printer made by Printwell. we already know that, question was about profits
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Senior Manager
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A
Company might be earning more now through increased sales of ink cartriges
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Senior Manager
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I am for A too..
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Director
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A 2..
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Senior Manager
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Must show a reason why Printwell is NOT providing the company with smaller profits.
How?
by increasing sales of their other product, ink cartridges
A for me too. Only one that shows a direct impact on profits.
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Senior Manager
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Good show ...OA is A
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Manager
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one more A
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Director
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The first statement in the question stim. leads me to think of the ink cartridges before reading the answer choices.
So it is A
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Manager
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A..
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Senior Manager
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We have to find the assumption that attacks the conclusion. A does exactly that: even if printer revenues have decreased, if the cartridges are bound to the printers, the ink jet division can still provide the company with higher profits.
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