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Questions 5-6 Sales manager: Last year the total number of

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Questions 5-6 Sales manager: Last year the total number of [#permalink] New post 21 Jan 2006, 22:50
00:00
A
B
C
D
E

Difficulty:

(N/A)

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0% (00:00) correct 0% (00:00) wrong based on 1 sessions
Questions 5-6

Sales manager: Last year the total number of meals sold in our company restaurants was much higher than it was the year before. Obviously consumers find our meals desirable.
Accountant: If you look at individual restaurants, however, you find that the number of meals sold actually decreased substantially at every one of our restaurants that was in operation both last year and the year before. The desirability of our meals to consumers has clearly decreased, given that this group of restaurants---the only ones for which we have sales figures that permit a comparison between last year and the year before---demonstrates a trend toward fewer sales.

5. If the sales figures cited by the accountant and the sales manager are both accurate, which one of the following must be true?

(A) The company opened at least one new restaurant in the last two years.
(B) The company’s meals are less competitive than they once were.
(C) The quality of the company’s meals has not improved over the last two years.
(D) The prices of the company’s meals have changed over the past two years.
(E) The market share captured by the company’s restaurants fell last year.

6. Which one of the following, if true, most seriously calls into question the accountant’s argument?

(A) The company’s restaurants last year dropped from their menus most of the new dishes that had been introduced the year before.
(B) Prior to last year there was an overall downward trend in the company’s sales.
(C) Those of the company’s restaurants that did increase their sales last year did not offer large discounts on prices to attract customers.
(D) Sales of the company’s most expensive meal contributed little to the overall two-year sales increase.
(E) Most of the company’s restaurants that were in operation throughout both last year and the year before are located in areas where residents experienced a severe overall decline in income last year.
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 [#permalink] New post 21 Jan 2006, 23:59
1 A

2 D
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 [#permalink] New post 22 Jan 2006, 02:40
I would go with:

1. A - In order that total number of meals increased but each individual restaurant had a decrease in sales, the only reason could be increase in the number of restaurants
2. B (by POE)- Not sure.
Since the data is only available for the last two years, and the conclusion is about desirability of the meals, there could be other reasons for reduction in sales. If there was already a downward trend prior to last year, that would point to a different reason than the desirability of meals.
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 [#permalink] New post 22 Jan 2006, 07:21
1. A

2. E. A and C are under the same umbrella of "less desirability of our meals to consumers", so they do not weaken the accountant's argument. B is OOS, so is D.
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 [#permalink] New post 22 Jan 2006, 07:56
E for the second question.

The limited income prevented cusotmers from the consumption.
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 [#permalink] New post 22 Jan 2006, 12:13
I go for A n B ,
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 [#permalink] New post 22 Jan 2006, 21:55
1)D
2)C
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 [#permalink] New post 22 Jan 2006, 22:38
For Question 5 I go with A

Lets say the years are 2005 and 2004

(A) The company opened at least one new restaurant in the last two years.

This is the only possibility since the sales manager says that sales for 2005>sales for 2004
And the accountant says that for each restaurant that existed sales for 2005<sales for 2004.

For both to be true the only option is when there was no sales for some restaurants in 2004 but was in 2005 which are new restaurants.

(B) The company’s meals are less competitive than they once were.
Scope outside the para

(C) The quality of the company’s meals has not improved over the last two years.
Still does not explain how the two differing statements can be true.

(D) The prices of the company’s meals have changed over the past two years.

The para has nothing to do with the revenue but only with the actual number of meals served. Hence we cannot conclude this.

(E) The market share captured by the company’s restaurants fell last year.
We dont know about the competitors so cannot conclude.
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 [#permalink] New post 28 Jan 2006, 07:55
OAs are:

5. A
6. E
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 [#permalink] New post 28 Jan 2006, 08:40
I like to think of these questions from an economic perspective:

5. A Poaching- New stores are cutting inro sales of existing stores

6.E Accountant's Assertion- Meals are now less desirable
Strongest Counterargument- Meals are still be desirable but lack of income prevents consumers from translating this into demand
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 [#permalink] New post 28 Jan 2006, 08:50
GMATT73 wrote:
OAs are:

5. A
6. E



:shock: can u post the OE for 6E ???????

can any1 explain why 6E ??? and not 6D?????? :oops:
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 [#permalink] New post 28 Jan 2006, 08:52
Hjort wrote:
I like to think of these questions from an economic perspective:

5. A Poaching- New stores are cutting inro sales of existing stores

6.E Accountant's Assertion- Meals are now less desirable
Strongest Counterargument- Meals are still be desirable but lack of income prevents consumers from translating this into demand


Thanx a lot Hjort......makes sense !!!.....
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 [#permalink] New post 28 Jan 2006, 17:21
I also got A and D.
  [#permalink] 28 Jan 2006, 17:21
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