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Printwell s Ink Jet Division manufactures ink-jet printers

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Printwell s Ink Jet Division manufactures ink-jet printers [#permalink] New post 12 Jun 2005, 19:38
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73% (02:31) correct 27% (01:50) wrong based on 143 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.
[Reveal] Spoiler: OA
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 [#permalink] New post 12 Jun 2005, 20:07
A. they can also make money on cartriges
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 [#permalink] New post 12 Jun 2005, 20:55
I would say A too
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 [#permalink] New post 12 Jun 2005, 21:37
A for me also
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 [#permalink] New post 12 Jun 2005, 21:51
Also go eith A, however there is not enough evidence to weaken the argument.
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 [#permalink] New post 14 Jun 2005, 05:35
One more for A.
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 [#permalink] New post 14 Jun 2005, 05:54
A.......
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 [#permalink] New post 14 Jun 2005, 06:12
(A) too, but not too strong to weaken.
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CR - Printwell [#permalink] New post 17 Dec 2006, 08:16
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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Re: CR - Printwell [#permalink] New post 17 Dec 2006, 08:28
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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 [#permalink] New post 17 Dec 2006, 08:36
A
Company might be earning more now through increased sales of ink cartriges
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 [#permalink] New post 17 Dec 2006, 09:03
this one must be A :-D just to boost my CR ego :lol: :lol: :lol:
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 [#permalink] New post 17 Dec 2006, 10:28
I am for A too..
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 [#permalink] New post 17 Dec 2006, 12:16
A 2..
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 [#permalink] New post 17 Dec 2006, 15:35
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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 [#permalink] New post 17 Dec 2006, 20:07
Good show ...OA is A
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 [#permalink] New post 19 Dec 2006, 08:38
one more A
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 [#permalink] New post 20 Dec 2006, 17:40
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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 [#permalink] New post 23 Dec 2006, 15:21
A..
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 [#permalink] New post 01 Jan 2007, 14:53
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.
  [#permalink] 01 Jan 2007, 14:53
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