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Questions 5-6 Sales manager: Last year the total number of [#permalink]
21 Jan 2006, 23:50
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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 companyâ€™s meals are less competitive than they once were.
(C) The quality of the companyâ€™s meals has not improved over the last two years.
(D) The prices of the companyâ€™s meals have changed over the past two years.
(E) The market share captured by the companyâ€™s restaurants fell last year.
6. Which one of the following, if true, most seriously calls into question the accountantâ€™s argument?
(A) The companyâ€™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 companyâ€™s sales.
(C) Those of the companyâ€™s restaurants that did increase their sales last year did not offer large discounts on prices to attract customers.
(D) Sales of the companyâ€™s most expensive meal contributed little to the overall two-year sales increase.
(E) Most of the companyâ€™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.
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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