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Sales of telephones have increased dramatically over the

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Sales of telephones have increased dramatically over the [#permalink] New post 25 Jul 2012, 22:07
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  55% (hard)

Question Stats:

52% (01:55) correct 48% (01:22) wrong based on 526 sessions
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.

Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?

(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.

Quote:
i marked A as the ans.
still not clear why it is the wrong choice
[Reveal] Spoiler: OA

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Re: Sales of telephones have [#permalink] New post 25 Jul 2012, 23:05
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maybeam wrote:
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.

Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?

(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.

Quote:
i marked A as the ans.
still not clear why it is the wrong choice

Hi

A is not correct as it doesn't allow us to deduce anything that actually has an effect on the argument. It doesn't even imply that mammoth's sales themselves have actually gone down. it says only that mammoth's share\proportion - of the sales has decreased, but that's not the same as saying that the sales themselves have actually decreased. Hope this clarifies
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Re: Sales of telephones have [#permalink] New post 26 Jul 2012, 01:17
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maybeam wrote:
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.

Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?

(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.
(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.
(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.

Quote:
i marked A as the ans.
still not clear why it is the wrong choice


The premise says that:-
".....while continuing its already very extensive advertising of this product."

The conclusion says that:-
the company wants to expand the production of its own telephone models BECAUSE "Sales of telephones have increased dramatically over the last year...."

The company could not make large sales despite good advertisement.

(E) suggests that even though the company reduced the price the sales fell down.This means that there is no such shortage of the products but rather the quality is not up to the mark so that people can buy it.
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Re: Sales of telephones have increased dramatically over the [#permalink] New post 19 May 2013, 05:06
Folks,

(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.

Mammoth sells all its inventory of telephones.However, the SALES FOR TELEPLHONES in the INDUSTRY has risen in a year , but MM Industries' share of ALL TELEPHONES has declined over last year.

Example:

Last year : MM sold 10 and Total Telephones 100 = 10%
This year : MM sold 10 and Total Telephones 200 = 5% Option (A) says this.

Now MM just looked the rise in Total Telephones from 100 to 200,ignoring the FACT that the rise in Total didn't cause rise in SALES for MM Industries, planned to expand the production and increase in advertising.But the fact is that the Total Sales increase caused increase in SALES of some other XYZ industries and not MM industries

So Expanding the production and advertising won't lead to SUCCESS.

Plz Advice

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Re: Sales of telephones have increased dramatically over the [#permalink] New post 11 Feb 2014, 16:30
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Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.

Conclusion: Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above
Reasoning: Sales of phone increased. M. increases phone productions. Still, M.I. cannot increase sales only if: the model is outdated; the phones don't work and are returned;prices dropped,etc.

(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year. Wrong - shell game. Clearly, the total share of the market <> absolute value of sales. If total share gets bigger + but company sales remain flat, then producing phones will hurt. But, if total share increases + company sales increase very litte, producing more phones could increase sales. This always the trap answer: for absolute value answers, trap is percentage; for percentage answers, the trap is absolute value answers.

(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year. Wrong - reverse answer. If times awaiting shipment has decreased, then more phones can be sold. Thus, there can be more sales.

(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand. Wrong - if few customers know of brand, then sales can increase.

(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales. Wrong - If market is increasing, then more sales can occur.

(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year. Correct - if prices have fallen, then producing more phones will saturate the market, thus accelerating the decline in prices.

IMO E
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Re: Sales of telephones have increased dramatically over the [#permalink] New post 06 Apr 2014, 06:31
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Got this on GMATPrep:

Got this one wrong since I misread the question.

Industry wide increases in sales of telephones over last year.

However, since MI's sales have fallen last year and there was an industry wide increase in sales of telephone, MI sales cannot be increased this year too by the stated plan.
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Re: Sales of telephones have increased dramatically over the [#permalink] New post 16 Nov 2014, 23:39
TGC wrote:
Got this on GMATPrep:

Got this one wrong since I misread the question.

Industry wide increases in sales of telephones over last year.

However, since MI's sales have fallen last year and there was an industry wide increase in sales of telephone, MI sales cannot be increased this year too by the stated plan.


Yeah, i also misinterpreted the information .Otherwise really a straight one..
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Re: Sales of telephones have increased dramatically over the [#permalink] New post 17 Nov 2014, 02:06
(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.

Although IMO is E but I have a doubt in understanding the meaning of option E.

Is (E) saying that the trend of fall from last year will continue this year as well or decrease in prices will saturate any further increase in supply ?

Please clear.... :roll:
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Re: Sales of telephones have increased dramatically over the [#permalink] New post 12 Apr 2015, 22:56
Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, Mammoth Industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.

Which of the following, if true, provides most support for the view that Mammoth Industries cannot increase its sales of telephones by adopting the plan outlined above?


Plan: Expand production, maintain extensive advertising
We need an answer to prove that PLAN won’t increase sales of MI’s phones


(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.


- Mammoth has sold all its phones, and according to the prompt, it has expanded production (therefore, more sales & profit, since it was able to sell all)
- Mammoth’s share in telephone sales is irrelevant on whether Mammoth can increase or decrease its sales

(B) Mammoth Industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.- So if Mammoth expands production, inventory will increase, therefore, shipment (sales) will increase

(C) Advertising has made the brand name of Mammoth Industries' telephones widely known, but few consumers know that Mammoth Industries owns this brand.- Irrelevant in terms of sales

(D) Mammoth Industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
- Last year’s sales is irrelevant
- Mammoth has only increased its sales this year

(E) Despite a slight decline in the retail price, sales of Mammoth Industries' telephones have fallen in the last year.- Correct answer because we know that expansion of production will not address the issue as the fact that there was a decline in the retail price and consequently a decline in sales suggests that there may be external factors as to why the phones are not selling
- Increasing supply without a corresponding demand will result to declined sales or loss
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Re: Sales of telephones have increased dramatically over the [#permalink] New post 03 May 2015, 09:14
(A) Although it sells all of the telephones that it produces, Mammoth Industries' share of all telephone sales has declined over the last year.

This a classic trap answer.

Whenever you see %age decrease an immediate thought pattern should occur in your mind that numbers must be increasing somewhere. (GMAT Pattern) Here is how -

1 yr ago -

Let Mammoth Industries' market share be - 55%
Total number of handsets sold be - 100
Number of handsets Mammoth Industries sold - 55 handsets.

Today -

Mammoth Industries' share of all telephone sales has declined over the last year.

Let Mammoth Industries' market share be - 50% (reduced from 55%)
Total number of handsets sold be - 1000
Number of handsets Mammoth Industries sold - 500 handsets.

i.e. Mammoth Industries sold more handsets than last year, even though market share has declined as you can see above. Since we have to destroy this option we increased the market size (one extreme). It is a variable quantity and you should use it to your advantage.

Takeaway - If you have to weaken a %age decrease option/question then immediate find an answer choice that says the total number must have increased somewhere.

Here is another problem using the same concept -

in-the-united-states-of-the-people-who-moved-from-one-state-136004.html
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Re: Sales of telephones have increased dramatically over the [#permalink] New post 03 May 2015, 15:37
Expert's post
the key is the words "in order to take advantage of this increase". these words show the assumptions that are being made.
in particular, the passage assumes that an overall increase in telephone sales, industry-wide, will automatically translate into an increase in sales for mammoth industries.

choice (e) severs this connection completely - it showed that mammoth's sales dropped as the industry-wide sales increased sharply - and so utterly destroys this assumed connection.
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Re: Sales of telephones have increased dramatically over the   [#permalink] 03 May 2015, 15:37
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