Find all School-related info fast with the new School-Specific MBA Forum

It is currently 27 Aug 2014, 19:06

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Sales of telephones have increased dramatically over the

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
2 KUDOS received
Manager
Manager
User avatar
Joined: 07 Dec 2011
Posts: 107
Location: India
Concentration: International Business, Strategy
GMAT Date: 07-30-2012
GPA: 2.66
WE: Information Technology (Computer Software)
Followers: 24

Kudos [?]: 94 [2] , given: 116

Sales of telephones have increased dramatically over the [#permalink] New post 25 Jul 2012, 22:07
2
This post received
KUDOS
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

53% (01:51) correct 47% (01:02) wrong based on 264 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

_________________

Please press Kudos if you found this post helpful

3 KUDOS received
Director
Director
User avatar
Status: Final Countdown
Joined: 17 Mar 2010
Posts: 564
Location: India
GPA: 3.82
WE: Account Management (Retail Banking)
Followers: 11

Kudos [?]: 130 [3] , given: 75

Re: Sales of telephones have [#permalink] New post 26 Jul 2012, 01:17
3
This post received
KUDOS
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.
_________________

" Make more efforts "
Press Kudos if you liked my post

1 KUDOS received
Manager
Manager
User avatar
Affiliations: Project Management Professional (PMP)
Joined: 30 Jun 2011
Posts: 213
Location: New Delhi, India
Followers: 2

Kudos [?]: 27 [1] , given: 12

GMAT Tests User
Re: Sales of telephones have [#permalink] New post 25 Jul 2012, 23:05
1
This post received
KUDOS
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
_________________

Best
Vaibhav

If you found my contribution helpful, please click the +1 Kudos button on the left, Thanks

1 KUDOS received
Manager
Manager
User avatar
Joined: 15 Sep 2011
Posts: 182
Location: United States
Concentration: Finance, International Business
WE: Corporate Finance (Manufacturing)
Followers: 1

Kudos [?]: 80 [1] , given: 5

Re: Sales of telephones have increased dramatically over the [#permalink] New post 11 Feb 2014, 16:30
1
This post received
KUDOS
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
_________________

A little kudos never hurt anyone. :)

1 KUDOS received
Director
Director
avatar
Joined: 03 Aug 2012
Posts: 890
Concentration: General Management, General Management
Schools: ISB '16
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
Followers: 12

Kudos [?]: 186 [1] , given: 304

Premium Member CAT Tests
Re: Sales of telephones have increased dramatically over the [#permalink] New post 06 Apr 2014, 06:31
1
This post received
KUDOS
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.
_________________

Rgds,
TGC!
_____________________________________________________________________
I Assisted You => KUDOS Please
_____________________________________________________________________________

Director
Director
avatar
Joined: 03 Aug 2012
Posts: 890
Concentration: General Management, General Management
Schools: ISB '16
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
Followers: 12

Kudos [?]: 186 [0], given: 304

Premium Member CAT Tests
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

Rgds,
TGC !!
_________________

Rgds,
TGC!
_____________________________________________________________________
I Assisted You => KUDOS Please
_____________________________________________________________________________

Re: Sales of telephones have increased dramatically over the   [#permalink] 19 May 2013, 05:06
    Similar topics Author Replies Last post
Similar
Topics:
3 Sales of telephones have increased dramatically over the fozzzy 7 05 Feb 2013, 05:25
3 Sales of telephones have increased dramatically over the PUNEETSCHDV 5 24 Aug 2012, 02:20
Sales of telephones have increased dramatically over the Richardson 2 04 Oct 2008, 19:25
Sales of telephones have increased dramatically over the rahuluec 11 22 Oct 2005, 20:29
2 Experts publish their posts in the topic Sales of telephones have increased dramatically over the cloaked_vessel 9 05 Apr 2005, 19:47
Display posts from previous: Sort by

Sales of telephones have increased dramatically over the

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.